To minimize Russian revenues from oil exports while easing tension in energy markets, EU countries have agreed on a price cap for Russian oil after a long battle. Together with international partners, they want to force Russia to start selling oil to buyers in other countries from Monday for a maximum of 60 dollars (about 57 euros) per barrel (159 litres).
To enforce the price cap, it should be regulated that important services for Russian oil exports may in future only be provided with impunity if the price of the exported oil does not exceed the price cap. Western shipping companies could use their ships to continue shipping Russian oil to third countries such as India. The regulation should also apply to other important services such as insurance, technical assistance, financing and brokerage services.
In order to respond to market developments, the plans provide for a bi-monthly review of the price cap. It must always be at least five percent below an average price set by the International Energy Agency (IEA). The price cap is intended to complement the oil embargo against Russia decided by the EU in June. This includes a ban on the purchase, import or shipment of crude oil and certain petroleum products from Russia to the EU.
Exceptions for Hungary
The restrictions will apply from December 5 for crude oil and from February 5, 2023 for other petroleum products. However, there are some exceptions, for example for Hungary.
Source: Krone
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