European Union diplomats meeting for a second week in a row failed to agree on a ceiling to cap Russian oil exports as countries remained divided about how to best to reduce Moscow’s capacity to fund its war in Ukraine.
The European Commission brought down its initial suggestion of $65-$70 a barrel to $62 during discussions in Brussels on Monday evening but Poland, Lithuania and Estonia said the figure was still too high, one EU diplomat told The National.
A second official said “there was improvement in the proposal, but details still need to be analysed by the capitals, not only price as such, but also the review mechanism”.
Discussions are expected to continue this week. The cap is aimed at trying to keep Russian oil flowing to avoid global shortages while at the same time limiting Moscow’s revenue.
Pressure is increasing on the bloc to finalise a deal before next Monday, when Brussels is due to introduce an outright ban on seaborne imports of Russian oil.
The Group of Seven (G7) nations has proposed a softer version of the EU ban to keep oil supply to the global economy steady. Russia supplies 10 per cent of the world's oil.
Figures under discussion are higher than current market rates of around $52 and production costs can be as low as $20 a barrel for Russia.
The country’s key Urals grade on Friday fell to $51.96 a barrel at the Baltic Sea port of Primorsk, according to data provided by Argus Media Ltd, a publisher of physical commodity prices. It fell by a similar amount, and to a similar level, to Novorossiysk in the Black Sea.
A consensus on a cap is expected to trigger a joint announcement with the G7 — Canada, France, Germany, Italy, Japan, the UK and US.
Maritime nations such as Greece and Cyprus were worried that a cap would hit their shipping industries but diplomats told Reuters that some concessions in the legal text and were no longer an obstacle.
The price cap idea was devised and promoted by the US Treasury Department. Asked about the status of the EU talks on Monday, US National Security Council spokesman John Kirby said “those discussions are going on in a pretty robust fashion” and “going well”.
“Our EU colleagues are working through the modalities of that right now, how that would be implemented, what level it’s going to be at,” he said at a White House briefing. “I don’t think we believe there’s a pressure on us right now to get more involved than we already are.”
MATCH INFO
Wales 1 (Bale 45 3')
Croatia 1 (Vlasic 09')
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
