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Post: US agrees to impose two ceilings on Russian oil products


Pipes and towers for burning the corresponding gas of the Omsk oil refinery. archive photo

The United States has agreed with its allies to impose two ceilings on oil products from Russia.

WASHINGTON, January 21 – RIA Novosti. The U.S. Treasury Department said the U.S., along with its allies, agreed to set two price caps on Russian oil products: those that trade at higher prices than oil and at a discount.

Deputy Treasury Secretary Wally Adeyomo held a virtual meeting Friday with colleagues from countries that have implemented a mechanism to limit the price of Russian oil shipped by sea.

“Deputies agreed on an approach that would see two ceilings for refined petroleum products… One for products that usually trade at a premium for crude oil, including diesel or kerosene, and the other for products sold at a discount.” says.

Limiting prices for Russian oil products is scheduled for February, when the European Union will refuse to buy them and ban their shipping by sea.

In addition, countries participating in the Russian oil price limiting mechanism in March will revise it. Introduced in December, the cap for oil exported by sea is currently $60 per barrel.

The US Treasury said in a statement, “(Deputy Finance Ministers) agreed to revise the oil price ceiling in March. This will allow the coalition to take into account developments in global markets.”

On December 5, Western oil sanctions came into effect: the European Union stopped accepting Russian oil transported by sea, and the G7 countries, Australia and the EU set a price cap for sea transport of $ 60 per barrel – oil is more expensive to transport and transport . insurance is prohibited. As of February 5, the maximum price for petroleum products is not yet known, but similar measures are expected to be taken.

In response, Russia is prohibited from supplying oil to foreign entities from 1 February if it directly or indirectly ensures the use of the price cap mechanism in contracts. The date for petroleum products will be determined by the government.

The general duration of the presidential decree is limited to 1 July 2023.

Source: Ria

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