EU member states have reached an agreement on setting a maximum price for oil products refined by Russia. Australia and the G7 countries, including the United States and Japan, have also agreed on this. Earlier, due to the war in Ukraine, a price ceiling was also introduced for Russian crude oil.
The price cap for premium Russian oil products such as diesel has been set at $100 (€92) a barrel, an insider in Brussels said. For “minor” products such as heating oil, this is 45 dollars (41 euros). The G7 countries and Australia also say they will apply such price caps.
Sanctions
The G7 and the EU already reached an agreement in December on a maximum price of 60 dollars (55 euros) per barrel of crude oil from Russia. Just as at the end of last year, countries are hoping to prevent Russia from gaining much from oil exports. According to the proposal presented by the European Commission, the new sanctioning measure will enter into force in the European Union tomorrow.
The Brussels insider speaks of a “balanced and restrictive measure that keeps the price of oil and its derivatives low enough to reduce Russian revenues by guaranteeing access to third countries”. Poland and the Baltic states had been pushing for lower prices to further limit Russia’s revenues.
Insurers
Under both sanctions, Western shipping and insurance companies are prohibited from insuring or transporting shipments of Russian crude oil and petroleum products unless they are purchased at or below the specified maximum price. Western insurers and shipowners play an important role in this trade.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
