EU Council adopts Russian oil price cap
The EU Council gave its approval to the "cap" of Russian diesel prices at $100 per barrel. The price cap for Russian petroleum products will take effect on 5 February. In some cases, there will be a transitional period of 55 days.
On 4 February, the EU Council agreed a price cap for oil products produced in or exported from Russia.
Today, two price caps were decided, according to an EU Council statement. One applies to petroleum products that are more expensive than crude oil, such as diesel, and the other is for cheaper products, such as fuel oil.
The ceiling price for Russian oil is $60 per barrel.
This means that Russian oil products, which are cheaper than crude oil, can be sold for up to $45 per barrel. And for diesel and other petroleum products, which cost more than crude oil, the price ceiling is set at $100 per barrel.
The price cap comes into effect on 5 February 2023. If the purchase price of Russian oil products exceeds the limits, companies would be banned from shipping them to third countries.
"A transitional period of 55 days is foreseen for those vessels carrying Russian oil products, which were purchased and loaded on the vessel before 5 February 2023 and unloaded before 1 April 2023," reads the statement.
In addition, the Council will return to reviewing the crude oil price cap mechanism from mid-March, and the review will occur regularly every two months.
The EU reaffirmed that it will stand by Ukraine and its people by reiterating its support for Ukraine's independence, sovereignty and territorial integrity within its internationally recognised borders.
