EU oil sanctions against Russia came into effect today on December 5, 2022.
Source: The European Council
“The Council decided today to set an oil price 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 level of the cap was established in close cooperation with the Price Cap Coalition and will become applicable as of 5 December 2022,” noted the European Council.
The price cap for oil and oil products originating from or exported from Russia will be reviewed every two months in order to respond to the development of the market situation and will be set at a level 5% lower than the average market price for Russian oil and oil products, calculated on the basis of data from the International Energy Agency.
“The price cap on Russian oil will limit price surges driven by extraordinary market conditions and drastically reduce the revenues Russia has earned from oil after it unleashed its illegal war of aggression against Ukraine. It will also serve to stabilize global energy prices while mitigating adverse consequences on energy supply to third countries,” concluded the European Council.
See also: European Union and the G7 countries agreed to introduce the price cap for Russian oil
