The EU has published a decision on the price ceiling for oil from Russia

The Council of the European Union approved the decision to set the maximum price for Russian oil at $60 per barrel, a statement on this was published in the official journal of the EU on the evening of December 3.

The ban on sea transportation of oil and oil products from Russia, as well as on transportation services to third countries, financial and technical assistance, will not apply if energy resources were purchased at or below the marginal price.

“This exemption is intended to mitigate adverse effects on energy supplies to third countries and reduce price shocks caused by extreme market conditions, while limiting Russia’s oil revenues,” the statement said. decision.

The decision also introduces a regular review of the price cap mechanism, the document says. This is necessary to monitor the effectiveness of the measures and their potential impact on the EU states, as well as “to respond to market developments, including possible shocks.”

“Such a revision should take into account the goals of the cap price, including its ability to reduce Russia’s revenues from the sale of oil, as well as the principle that the cap price should be at least 5% below the average market price for Russian oil and petroleum products,” it says. in the solution.

Earlier, RIA Novosti, citing a high-ranking source in Brussels, reported that the first revision of the ceiling price was scheduled for January 2023. He explained that the revision could be carried out every two months in parallel within the European Union and with the participation of partners in the G7.

The European Commission recalled that the price limit comes into force on December 5, 2022 for crude oil and from February 5, 2023 for petroleum products. The price cap will not be applied to maritime transportation provided that crude oil is shipped before December 5, 2022 and arrives at the port of destination no later than January 19, 2023. “During this period, maritime services and sea transportation can be provided. There is no similar provision for oil products,” the EC specified.

In the event that a third-country flagged vessel carries Russian oil at a price above the ceiling, EU operators will be prohibited from insuring, financing and servicing ships for 90 days after unloading oil purchased at a price above the ceiling. A ship that has committed such a violation, sailing under the flag of one of the EU countries, will be subject to the consequences provided for by the legislation of the country – a member of the Union.

The Russian authorities have repeatedly said that they will not supply energy resources to countries that join the price ceiling for oil and gas from the Russian Federation. “We will not act to our own detriment,” Russian President Vladimir Putin said in October.