EU agrees on level of price caps for Russian petroleum products

The Council decided to set two price caps for petroleum products falling under CN code 2710 which originate in or are exported from Russia.

These are the price per barrel at or below which petroleum products from Russia are exempt from the prohibition to provide:

- maritime transport of petroleum products to third countries and

- technical assistance, brokering services or financing or financial assistance, related to the maritime transport of petroleum products to third countries.

The first price cap for petroleum products traded at a discount to crude oil is set at USD 45 per barrel, while the second price cap for petroleum products traded at a premium to crude is set at USD 100 per barrel.

The level of the cap was established in close cooperation with the Price Cap Coalition and will become applicable as of 5 February 2023. A transitional period of 55 days is foreseen for those vessels carrying Russian petroleum products, which were purchased and loaded onto the vessel prior to 5 February 2023 and unloaded prior to 1 April 2023.

In addition, the Council will revert to review the price cap mechanism for crude oil as of mid-March and the review will occur regularly every two months.

In the face of Russia's war of aggression, the EU stands resolutely with Ukraine and its people, and is unwavering in its support of Ukraine's independence, sovereignty and territorial integrity within its internationally recognised borders, as well as of Ukraine’s inherent right of self-defence against the Russian aggression.

Background

On 6 October 2022, the Council adopted Decision (CFSP) 2022/1909, which introduced an exemption from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below a pre-established price cap agreed by the Price Cap Coalition. That exemption is intended to mitigate adverse consequences on energy supply to third countries and reduce price surges driven by extraordinary market conditions, while limiting Russian oil revenues.

On 3 December 2022, the Council adopted Decision (CFSP) 2022/2369 , which established the price cap for crude oil at USD 60 per barrel.