The G7 countries, the European Union and Australia have agreed on two price ceilings for Russian oil products. This is reported by the US Treasury Department.
According to the agency, one price ceiling will apply to petroleum products normally traded at a surcharge on crude oil (diesel) and another to products traded at a discount (fuel oil). In addition, Western countries agreed in March 2023 to revise the price ceiling for Russian oil supplied by sea.
The decision on the price ceiling for petroleum products was agreed upon during a virtual meeting of deputy finance ministers of the countries participating in the price cap coalition.
The US Treasury Department said in a press release that meeting members confirmed that the price ceiling is achieving its goals, namely, limiting Russia’s export earnings and stabilizing global energy supplies.
The agreement on price ceilings for Russian oil transported by sea to the European Union, Australia and the G7 countries came into force on December 5, 2022. The limit was set at $60. per barrel. It is expected that the price ceiling for Russian oil products will come into effect on February 5, 2023. Thanks to this, black gold will not be bought above the price agreed upon by Ukraine’s allies.
The deputy ministers acknowledged that limiting the price of Russian oil today achieves the dual goal of limiting Russia’s oil revenues and stabilizing global energy supplies.”
Source: Racurs
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.