EU, G7 impose price caps on Russian petroleum products

BRUSSELS - The European Union (EU), together with the Group of Seven (G7), adopted on Saturday further price caps for seaborne Russian petroleum products, according to a European Commission (EC) press release.

The price cap for "premium-to-crude" petroleum products, such as diesel, kerosene and gasoline, is set at $100 per barrel, while the cap for "discount-to-crude" petroleum products, such as fuel oil and naphtha, is set at $45 per barrel, the EC has said.

The price caps will be implemented from Sunday, the EC has said, adding that it includes "a 55-day wind-down period" for seaborne Russian petroleum products purchased above the price cap, provided it is loaded onto a vessel at the port of loading prior to Feb 5, 2023 and unloaded at the final port of destination prior to April 1, 2023.

Meanwhile, the EU's ban in June 2022 on import of Russian petroleum products will also take effect on Sunday.

In December 2022, the EU placed a price cap of $60 per barrel on Russian seaborne crude oil, which was joined by the G7.

In December, Russian President Vladimir Putin signed a decree banning supplies of Russian oil and petroleum products if contracts directly or indirectly provide for a price cap, Sputnik reported.