Novak: oil companies did not apply for the permission of transactions on the price ceiling

Russian oil companies have not asked the government to allow them to supply oil and oil products under price ceilings imposed by Western countries. This was stated by Deputy Prime Minister Alexander Novak, transmits TASS.

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., the restrictions came into force simultaneously with the ban on offshore deliveries of oil products from Russia to the EU on February 5.

7 February European Commission published clarifications stating that the EU price ceiling and embargo on the supply of petroleum products from Russia, introduced earlier by the EU, will not apply to petroleum products produced abroad from Russian oil. In addition, the price ceiling will also not apply to oil products that have been mixed with oil products from Russia, resulting in a product with a different customs code.

After that, on February 8, Novak indicated on the demand for Russian oil products in Europe. According to him, with this decision, European politicians showed that their actions defy any logic: first they make momentary decisions, and then they think “how to get out of this situation.” The introduced exceptions, the Deputy Prime Minister believes, are, in fact, the legalization of gray schemes, “which are already being implemented due to ineffective decisions of European politicians.”

In addition, from December 5, 2022, a price ceiling imposed by unfriendly countries on offshore oil supplies from the Russian Federation is in effect. At that time, a ceiling was set on Russian oil at $60/bbl.

Following the introduction of the oil price ceiling, Russian President Vladimir Putin signed a retaliatory decree on December 27, 2022, according to which Russia will not supply oil if the contracts explicitly or implicitly provide for a price cap mechanism. It is emphasized that this measure is applied at all stages of deliveries to the final buyer. The document entered into force on February 1.