The G7-led coalition sets a price ceiling for Russian oil products – #G7led #coalition #sets #price #ceiling #Russian #oil #products
WASHINGTON, Feb 3 (Reuters) – The Group of Seven, the wealthy Europe Commonwealth and Australia to secure markets while limiting Moscow’s revenues when the EU embargo is imposed Russia set price limits for diesel and other refined petroleum products.
The EU measure, which came into force on February 5, follows an earlier EU embargo on Russian offshore crude, with the bloc, the G7 and Australia keeping crude prices below 60% from December 5. dollars/barrel level.
The coalition aims to punish Russia for its aggression against Ukraine nearly a year ago by depriving it of oil and commodity export revenues, while at the same time Russia is to prevent the price increase that may occur if the flow of oil to the global markets is stopped.
Russia Price cap mechanisms, intended as a safeguard against the EU ban covering the insurance and transportation of oil and therefore risks undermining the entire global trade, have been imposed on such services. mandatory may allow if below the price.
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Below are the key elements of how the Russian fines embargo should work:
PRICE CAP
The coalition said on Friday it would set the price ceiling for a barrel of high-priced crude oil, mainly diesel. 100 dollarsand 45 for discounted products such as fuel oil and naphtha dollars/barrel level. this is Europe Commission offer was consistent with the levels he did.
The coalition said in a statement that the price restrictions on oil products will be implemented on February 5 or “very soon thereafter”. Participating countries have said they will include “time-limited exemptions” for products shipped before February 5.
WHAT IS PROHIBITED
The EU ban will prevent EU ships from originating in Russia unless products are purchased at or below the price threshold agreed by the coalition.hand prohibits the transportation of oil products.
This provision also applies to companies that provide technical, brokerage or financial assistance, such as insurance for cargo carrying Russian processed products.
PENALTIES
If a third-party flagged vessel knowingly carries Russian oil above the price limit, EU operators will be prohibited from insuring, financing and servicing the vessel for 90 days after discharge.
Ships sailing under the EU flag national will be subject to penalties under the law, but the EU is working on fines of 5% of global turnover for companies that violate EU sanctions.
NEXT STEPS
The G7 coalition announced on December 5 that it will revise the crude oil price limit in March.
Decisions on any changes will be based on technical analysis by groups such as the International Energy Agency, while also taking into account the impact on Russia’s oil revenues.
Reporting by Andrea Shalal and Swati Verma; Edited by Leslie Adler
Our standards: Thomson Reuters Trust Principles.
2023-02-04 04:24:20
Source – reuters
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