EU countries prepare a maximum price for oil products from Russian refineries

According to the news on the Politico website, the EU, whose embargo on oil products from Russian refineries will take effect on February 5, has taken steps to limit the price of these products.

The EU Commission, targeting Russia’s oil revenues, proposed member states, along with the G7 countries, to apply two different maximum prices to Russia, as high-value and low-value refinery products.

In this context, the EU demanded a maximum price of $100 per barrel for Russian diesel and kerosene, and $45 per barrel for the cheapest light-colored fuel oil and petroleum products.

EXPORT LIMITATION IS IMPLEMENTED

The EU demanded that these maximum prices take effect on February 5, when the Union embargo on Russian refined petroleum products will come into force.

Therefore, the EU and the G7 will impose restrictions on exports of refined petroleum products from Russia to third countries.

Companies from Western countries will be able to provide services for the export of refined petroleum products from Russia only if the product in question is sold below the maximum price to be determined.

At this stage, the EU Commission proposal is handled by the representatives of the member states. The unanimous consent of the EU countries is required for the maximum price to take effect.

Once unanimity is achieved within the EU, the G7 countries will also be asked to join the price cap.

DECISION APPLIED ON DECEMBER 5

On the other hand, on December 5, the decision of the EU countries began to ban imports of oil transported by sea from Russia and impose a maximum price of 60 dollars per barrel.

If Russian oil is sold to third countries at a price higher than the established price, companies from the G7 countries and the EU cannot offer various services such as transportation, insurance and brokerage for this oil. To provide these services, Russian oil must trade below the maximum price. (AA)