The US and the EU are going to review the operation of the price ceiling for petroleum products from Russia

The United States and the European Union plan to review the operation of the Russian oil price ceiling mechanism in March, with Brussels able to lower it by $5, US Treasury Assistant Secretary for Economic Policy Ben Harris said. writes TASS.

“Europe has pledged to revise the price ceiling [на нефтепродукты РФ] in March, as informed by the International Energy Agency,” he said during a speech at the American Enterprise Institute. Harris admitted that Brussels could lower this limit by $5.

“So if the market price is $50, that means a $2 or $3 discount. These were European commitments. The United States, having agreed to caps on petroleum products, committed to review in March, along with the rest of the G7 countries, an oil price cap, but not to commit itself to adjusting the price cap. We are waiting for their assessment from the IEA,” he added.

On December 3, 2022, the EU countries agreed on a price ceiling for Russian oil in the amount of $60 per barrel. The document was published in the Official Journal of the EU on 4 December. The restriction came into force on December 5, along with a ban on the supply of Russian oil by sea to the EU countries. For oil products, the restriction came into effect on February 5. In addition to the EU countries, the G7 countries and Australia also joined the ceiling.

December 27, 2022 Russian President Vladimir Putin signed Decree on retaliatory measures to the oil price ceiling. According to the text of the document, a ban is introduced on the supply of Russian oil and oil products to foreign companies and individuals, if the contracts directly or indirectly provide for a cap price mechanism. It is emphasized that this measure is applied at all stages of deliveries to the final buyer. It is also clarified that the president can make a special decision on the supply of oil and oil products, in respect of which restrictions were previously introduced by decree. The ban on oil supplies came into force on February 1, 2023, and the Russian government will determine the date for oil products.

Previously Bloomberg, citing sources informedthat India will not violate Western sanctions on Russia, including the ceiling on oil prices. According to the agency, the Indian authorities have asked banks and traders to comply with the rules. On this occasion, the press secretary of the President of Russia Dmitry Peskov on March 13 commentedthat Russia in this case focuses not on the reports of news agencies, but primarily on contacts with India.