G7 and Australia agreed on two price ceilings for oil products from Russia following the EU


The G7 countries and Australia, following the EU, have agreed on two price ceilings for oil products from Russia. At the same time, the United States announced that exceptions would be made for supplies to Bulgaria, Croatia and EU countries that do not have access to the sea.

The US, other G7 countries (also includes the UK, Canada, Germany, Italy, France, and Japan) and Australia, following the EU, agreed on price ceilings for Russian oil products at $100 and $45 per barrel for products traded at a premium and a discount, respectively. . Statements about this are published on  the website of the US Treasury and on  the website of the UK government, which is part of the G7. The restriction will take effect on February 5.

At the same time, the US Treasury  announced that the sanctions associated with the price ceiling will not affect the supply of petroleum products to Bulgaria, Croatia and EU countries that have no access to the sea. The Ministry of Finance explained the exclusion by the decision of the EU Council – in the  sixth package of the  bloc on the embargo on Russian oil and oil products exported by sea, exceptions were made for the supply of oil and oil products to Bulgaria until the end of 2024, while Croatia can buy Russian gas oil until the end of 2023. The EU then withdrew countries from the embargo that had no alternatives.

“Today’s announcement is the culmination of months of work by our coalition, and I applaud our partners’ hard work to achieve this result,”  Treasury Secretary Janet Yellen said in a statement. An unnamed agency official said on Feb. 3 that the purpose of the restrictions was not to “collapse the Russian economy” but to prevent the Russian authorities from simultaneously supporting it and “funding the fighting in Ukraine”

source: forbes