The embargo and the application of maximum EU prices on Russian oil products come into force

The sanction, which includes a ban on importing seaborne refined petroleum products from Russia, adopted by EU countries in June last year, came into force today with the end of the 8-month transition period.

Consequently, EU countries will no longer purchase various refinery oil products such as diesel and liquid fuel (petroleum fuel) from Russia.

LIMITATION TO REFINERY PETROLEUM PRODUCTS

Petroleum products sold and loaded on ships before February 5 will not be affected by the new restrictions during a 55-day transition period. These petroleum derivatives must arrive at their final destination on April 1 and the tankers must unload their cargo.

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

In this framework, Western countries will apply two different maximum prices to Russia: high-value and low-value refinery products. Refinery products, cheap from crude oil and expensive from crude oil, were divided into two classes here.

A price ceiling of $100 a barrel was imposed on Russian diesel and kerosene, and $45 a barrel on cheaper liquid fuels and light-colored petroleum products.

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

OIL BAN AND PRICE CAP HAS BEEN IMPLEMENTED

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, the companies of the G7 countries and the EU; You cannot provide various services such as transportation, insurance and brokerage to this oil. To provide these services, Russian oil must trade below the maximum price. (AA)