The EU will impose a maximum price on Russian oil products

In a post shared on the official social media account of the Swedish EU presidency, it was claimed that EU countries, whose embargo on oil products from Russian refineries will take effect on February 5, have reached a consensus to limit the price of these products.

“The ambassadors of the EU countries have approved a maximum price for Russian oil products,” the post said. expression was used.

Ursula von der Leyen, President of the EU Commission, also tweeted: “With the G7, we are ensuring stable global energy markets while reducing Russia’s revenue by setting a price ceiling for Russian oil products.” shared.

IMPORT BAN OF PETROLEUM PRODUCTS INTO THE EU

The sixth package of sanctions, which includes a ban on importing refined petroleum products from Russia, which EU countries adopted in June last year, will enter into force on Sunday, February 5, after the end of the transition period from 8 months.

As of this date, EU countries will not buy various products derived from refinery oil, such as diesel and liquid fuel (fuel-oil) from Russia.

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

In this framework, the EU and the G7 countries will apply two different maximum prices to Russia, namely high-value and low-value refinery products.

Western countries will impose a price ceiling of $100 a barrel on Russian diesel and kerosene, and $45 a barrel on cheaper liquid fuels and light-colored petroleum products.

EU companies will be able to provide services such as transportation, insurance and export financing of Russian oil refinery products to third countries only if the product in question is sold below the maximum price to be determined.

The implementation of the ban by EU countries on imports of oil transported from Russia by sea and the maximum price of $60 per barrel began on December 5.

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