Malta is reportedly resisting the proposed lowering of the oil price cap

Malta has objected to the European Commission's proposal to further lower the price cap on Russian oil exports, Politico reported, citing EU diplomatic sources. The issue reportedly came up during a meeting of the Committee of Permanent Representatives on Sunday, with Reuters noting that one member state had entered a "technical reservation."

The measure which the Commission suggested is part of the bloc's 18th sanctions package, which targets Moscow over its role in the Ukraine conflict. It includes a floating price cap on Russian crude oil set at 15% below the average global price over the previous three months.

It would replace the current $60 per barrel limit introduced in 2022. The measure bars EU member states and vessels flying their flags from carrying oil originating in Russia if sold for more than the threshold price.

Malta's specific concerns have not been detailed, but a large number of ships fly the flag of the island nation. Its maritime insurance sector has previously expressed unease over measures that could drive shipowners to reflag outside the EU, causing economic harm to the bloc's shipping registries and related industries.

Apart from the proposed lower price cap, the new sanctions package includes a ban on the future use of the Nord Stream pipeline, restricts imports of refined products made from Russian crude, and sanctions 77 vessels which the West has claimed are part of a so-called Russian "shadow fleet."

Although the European Union has not imposed an outright ban on Russian gas, the majority of member states have voluntarily reduced their imports since the Ukraine conflict escalated in 2022. Nonetheless, several landlocked nations, including Slovakia, Hungary, Austria, and the Czech Republic, continue to depend on limited supplies under exemption arrangements.

Slovakia, which initially blocked the 18th package, may endorse it, Politico noted, if Brussels eases the impact of phasing out Russian energy under the RePowerEU plan, which targets ending such imports by 2027.

READ MORE: EU nation seeking guarantees in fight over Russian gas - PM

Moscow has condemned Western sanctions, calling them illegal and counterproductive. Russian President Vladimir Putin has set the lifting of sanctions as a condition for resolving the Ukraine conflict.