The price ceiling on the import of Russian crude oil transported by sea comes into force today

As of today, December 5, an upper price cap of $60 per barrel for Russian crude oil imported by sea into the European Union comes into effect. According to the restriction, the provision of certain services for the maritime supply of Russian oil, including insurance, financing and technical assistance, should be prohibited if the oil was sold above the $60 threshold. This was decided on Friday, December 2, after the 27 member states agreed to introduce new restrictions against Russia in response to its invasion of Ukraine. 

The price cap builds on the EU’s tougher outright ban on buying Russian offshore crude, which also comes into effect today.  On Friday, Russia’s Urals crude was trading at around $67 per barrel, Reuters recalled. In line with the EU’s decision, the Group of Seven (G7) and Australia also reached a consensus to introduce a maximum price of $60 per barrel for offshore crude oil originating in Russia, the G7 said in joint statement. Reuters said the G7 measure is also expected to take effect today or in the near future.

The initial proposal of the G-7 was for a ceiling on the price of Russian oil of 65-70 dollars per barrel, without foreseeing a mechanism for its correction.

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