The US Treasury announced an agreement between countries to introduce two price ceilings for oil products in Russia
The US authorities and their allies have agreed to introduce two price ceilings for oil products from Russia, depending on their category. This is reported TASS with reference to the US Treasury.
A single ceiling is envisaged for petroleum products that are normally traded at a premium to crude oil, such as diesel or gasoline. A different price ceiling will be introduced for products that trade at a discount to crude oil, such as heating oil.
It is noted that the decision was made following a virtual meeting of Deputy Finance Minister Wally Adeyomo with colleagues from countries that apply the price cap mechanism for Russian oil supplied by sea.
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$60 per barrel
Earlier, the G7 countries, the European Union, Australia, Norway and Switzerland set a price ceiling for offshore supplies of Russian oil at $60 per barrel. The restrictions have been in effect since December 5, 2022.
The response to the restrictions by the European Union was announced by the Kremlin.
One thing is obvious – we will not recognize any ceilings
Kremlin spokesman Dmitry Peskov also assured that the introduction of a ceiling price on Russian oil would not affect the financing of the military operation in Ukraine.
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double ceiling
On January 10, it became known about the plans of the G7 countries to set two price ceilings for Russian oil products – the measure should come into force on February 5. The Group is considering introducing one ceiling for oil products that trade at a discount to oil and a second ceiling for oil products that trade at a premium.
Sources Reuters reported that limiting the cost of petroleum products is a more complicated procedure than the price ceiling for oil. This is due to the fact that there are several types of petroleum products and their cost often depends not on the country of production, but on the place of purchase.
The interlocutor of the agency added that diesel fuel and kerosene have historically been traded more expensive than crude oil, while fuel oil has been cheaper, so the bloc is seeking to delimit the measures.
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US position
On January 20, it was reported that the administration of US President Joe Biden was going to oppose lowering the marginal price for Russian oil exports, despite the initiative of the European Union (EU) countries to set limits below $60 per barrel.
According to Bloomberg, a unanimous decision of the G7 countries and the EU is required to change the price ceiling. This raises the possibility that the price of Russian oil will be kept at $60 per barrel, the agency stressed.
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