The Council of the European Union determined immediately to set an oil worth cap for crude oil and petroleum oils and oils obtained from bituminous minerals (CN code 2709 00) which originate in or are exported from Russia, at USD 60 per barrel.
The extent of the cap was established in shut cooperation with the Worth Cap Coalition and can develop into relevant as of 5 December 2022.
The value cap on Russian oil will restrict worth surges pushed by extraordinary market situations and drastically cut back the revenues Russia has earned from oil after it unleashed its unlawful struggle of aggression in opposition to Ukraine. It can additionally serve to stabilise world power costs whereas mitigating opposed penalties on power provide to 3rd nations.
On 6 October 2022, the Council adopted a call prohibiting the maritime transport of Russian crude oil (as of 5 December 2022) and petroleum merchandise (as of 5 February 2023) to 3rd nations, and the associated provision of technical help, brokering companies or financing or monetary help.
The Council choice additionally launched an exemption from the above-mentioned prohibitions for crude oil or petroleum merchandise which originate in or are exported from Russia, and are bought at or beneath a pre-established worth cap agreed by the Worth Cap Coalition.
Right now’s choice units the extent at which the exemption apply, and introduces a transition interval of 45 days for vessels carrying crude oil originating in Russia, bought and loaded onto the vessel prior to five December 2022 and unloaded on the last port of vacation spot previous to 19 January 2023. As the value cap could also be periodically reviewed to adapt to the market scenario, immediately’s choice additionally units a transition interval of 90 days after each change within the worth cap, to make sure coherent implementation of the value cap by all operators.
The functioning of the value cap mechanism will likely be reviewed each two months to reply to developments available in the market, and will likely be set no less than 5% beneath the typical market worth for Russian oil and petroleum merchandise, calculated on the premise of knowledge supplied by the Worldwide Vitality Company.
The Council additionally launched an “emergency clause” which permits the transport of oil past the value cap or the availability of technical help, brokering companies or financing or monetary help associated to the transport, when these are vital for the pressing prevention or mitigation of an occasion prone to have a critical and vital impression on human well being and security or the setting, or as a response to pure disasters.
Within the face of Russia’s struggle of aggression, the EU stands resolutely with Ukraine and its folks, and is unwavering in its assist of Ukraine’s independence, sovereignty and territorial integrity inside its internationally recognised borders.
The related authorized acts will quickly be printed within the Official Journal.
EU adopts its newest package deal of sanctions in opposition to Russia over the unlawful annexation of Ukraine’s Donetsk, Luhansk, Zaporizhzhia and Kherson areas (press launch, 6 October 2022)
EU restrictive measures in response to the disaster in Ukraine (background data)
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