How the Russian oil price ceiling will affect the ruble exchange rate and budget revenues
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The EU and the G7 members – Great Britain, Germany, Italy, Canada, France, Japan, the USA – agreed on a price ceiling for Russian oil, and it started working on December 5. The purpose of this mechanism of the Western countries was called the reduction of Russia’s income from the sale of energy resources. On the same day, the EU embargo on offshore supplies of Russian oil came into force.
The marginal price for oil from Russia is set at $60 per barrel, but starting from mid-January, this level is planned to be reviewed every two months. The ceiling will be set at least 5% below the average price for Russian oil, calculated on the basis of IEA data. Each change will require the approval of all EU and G7 countries.
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