Council of EU approved decision to limit price of Russian oil
On Saturday, the Council of the EU decided to set the maximum price for oil and oil products and oils originating from or exported from Russia at the level of 60 dollars per barrel.
As Censor.NET informs, "Euro Integration" writes about this with reference to the message of the Council of the EU.
The cap price level was set in close cooperation with the Oil Price Restraint Coalition and will take effect on December 5, 2022.
"Limiting the price of Russian oil will limit price spikes caused by extraordinary market conditions and will sharply reduce the revenues that Russia received from the sale of oil after it launched an illegal war of aggression against Ukraine. It will also contribute to the stabilization of world energy prices and the mitigation of negative consequences for the energy supply of third countries," the message says.
On October 6, 2022, the Council of the EU adopted a decision to ban the maritime transportation of Russian oil (from December 5, 2022) and oil products (from February 5, 2023) to third countries, as well as the related provision of technical assistance, brokerage services or financing or financial assistance.
The Council's decision also introduced an exception to the above bans for oil and petroleum products originating in or exported from Russia and purchased at or below a pre-set ceiling price agreed upon by the Ceiling Coalition.
Today's decision establishes the level at which the exception applies and introduces a 45-day transition period for vessels carrying crude oil of Russian origin purchased and loaded on a vessel by December 5, 2022, and discharged at the final port of destination by January 19, 2023.
As the price cap may be revised periodically to adapt to the market situation, today's decision also establishes a transition period of 90 days after each change in the price cap to ensure consistent application of the price cap by all operators.
The functioning of the limit price mechanism will be reviewed every two months in order to respond to the development of the market situation and will be set at a level at least 5% below the average market price for Russian oil and oil products, calculated on the basis of data from the International Energy Agency.
The EU Council has also introduced an "emergency clause" which allows the transport of oil at a price above the upper limit when it is necessary to urgently prevent or mitigate the consequences of an event that could have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters.
The relevant legal acts will be published in the Official Journal in the near future. The day before, the decision on the maximum price was adopted by the ambassadors of 27 EU member states.
