Belgium, (Brussels Morning Newspaper) The EU has adopted additional price caps on Russian oil products, with the European Commission stressing that the move will hit Russia’s revenues.
In a statement released on Saturday, the EC pointed out that additional price caps will limit Russia’s ability to wage war and help to stabilise global energy markets.
The move is an addition to the price cap on Russian crude oil put in place in December last year.
EC President Ursula von der Leyen stated “we are making [Russian President Vladimir] Putin pay for his atrocious war… Russia is paying a heavy price as our sanctions are eroding its economy, throwing it back by a generation.”
She reminded that the latest price cap was agreed with G7 partners and stressed that it will put additional pressure on Moscow. “By 24 February, exactly one year since the invasion started, we aim to have the tenth package of sanctions in place,” von der Leyen noted.
Two price caps in place
The EU has put in place two price levels for Russian oil products – one for “premium-to-crude” products including gasoline, diesel and kerosene, and one for “discount-to-crude” products including naphta and fuel oil.
The price cap for the former stands at USD 100 per barrel and the latter at 45 per barrel, with the EC pointing out that this reflects market dynamics.
The latest price cap includes a wind-down period of 55 days for products purchased above the cap if said products are loaded before 5 February and unloaded before 1 April this year.
The Commission noted that the caps will be monitored to make sure they are effective, stressing that price caps will be adjusted and reviewed as needed.
The body reminded that the price cap coalition includes the EU, the US, the UK, Australia, Canada and Japan.
It added that sanctions against Russia are effective as they limit Moscow’s ability to manufacture and repair weapons, adding that the bloc adopted sanctions against Belarus over the country’s involvement in the war in Ukraine.
The Commission concluded that it continues to stand with Ukraine and will continue to do provide the country with financial, humanitarian and political support.
