EC: price ceiling will not affect foreign oil products from Russian oil
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The price ceiling and embargo on the supply of petroleum products from Russia, introduced earlier by the European Union, will not apply to petroleum products produced abroad from Russian oil, follows from clarification European Commission (EC).
In addition, the price ceiling will also not apply to oil products that have been blended with oil products from Russia.
Earlier, the G7 countries (G7, includes the UK, Germany, Italy, Canada, USA, France, Japan) and the European Union (EU) set a limit on export prices for expensive oil products from Russia (for example, diesel) at $100/bbl, and for cheaper ones (fuel oil) – at the level of $45/bbl, restrictions entered into force simultaneously with the ban on offshore shipments of oil products from Russia to the EU on 5 February.
On December 5, simultaneously with the EU embargo on offshore oil supplies from Russia, a price ceiling for it began to operate. It was set at $60/bbl. Already this year, this level may be revised – the “new ceiling” in this case will be at least 5% lower than the export price of Russian oil over the past period, the official journal of the EU reported on December 4.
As analysts interviewed by Vedomosti noted, an embargo on the export of petroleum products to the EU could exert significant pressure, because it would be difficult for Russian oil refiners to immediately redirect significant flows of petroleum products, including due to a lack of fleet. In this situation, India and China may start buying oil products in Russia at a discount for consumption in the domestic market. This will allow them to increase the export of their own oil products to Europe, which will be sold at the market price.
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