EU And G7 Approve Price Caps For Petroleum Products From Russian Federation

The European Union has approved two restrictions on the prices of Russian oil products. Also, the G7 countries approved the price cap, the European Commission’s press service said.

“We are making Putin pay for his atrocious war. Russia is paying a heavy price, as our sanctions are eroding its economy, throwing it back by a generation. Today, we are turning up the pressure further by introducing additional price caps on Russian petroleum products. This has been agreed with our G7 partners and will further erode Putin's resources to wage war. By 24 February, exactly one year since the invasion started, we aim to have the tenth package of sanctions in place,” said Ursula von der Leyen, President of the European Commission.

Restrictions are set at USD 100 per barrel for gasoline and diesel fuel, as well as USD 45 for low-value-added products.

“The price cap on petroleum products will be implemented from 5 February 2023. It includes a 55-day wind-down period for seaborne Russian petroleum products purchased above the price cap, provided it is loaded onto a vessel at the port of loading prior to 5 February 2023 and unloaded at the final port of destination prior to 1 April 2023,” the European Commission explained.

It is indicated that the European Council will return to the revision of the mechanism for limiting the price of crude oil in mid-March, and will regularly review the price caps every two months.