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The decision of the European Union and the G7 on the introduction of an embargo on the import of petroleum products from the Russian Federation with the use of marginal prices has come into force.
The ban on the import of fuel from Russia to the EU and G7 countries concerns the provision of services for the transportation of Russian oil products by sea, as well as their insurance, brokerage services and financing of operations, with the exception of cases of sale at a price not exceeding a certain level – price cap (price ceiling).
For those types of oil products that are traded at a premium to oil (gasoline and diesel fuel), the price ceiling is set at $100 per barrel. For oil products that are sold at a discount to oil (fuel oil) – at the level of $45.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has previously clarified that petroleum products produced in Russia will not be subject to the price ceiling if purchased prior to its entry into force and delivered no later than April 1, 2023. In addition, the restrictions will not affect oil and oil products after deep processing outside of Russia, while mixing different types of fuel to bypass the price cap is prohibited.
A similar embargo has been in force since December 5, 2022, on the import of Russian oil, the price cap for which is set at $60 per barrel.
The task of the embargo and price ceiling for Russian oil and oil products is to limit the revenues of the Russian budget from the sale of energy resources.
Source: Rosbalt
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