The Latest on the Oil Price Cap for Russian Crude
A European Commission spokesperson said in an interview that EU member states and the G7 have not yet agreed to adjust the price ceiling on Russian oil. The spokesperson noted that the necessary majority vote was not reached and the agreement did not come into effect yet. Attribution: European Commission
The rules on the price cap were negotiated among the European Union, the G7 nations, and Australia. The cap on crude oil was set at $60 per barrel and began to take full effect in December 2022. A separate price cap of $100 per barrel for Russian petroleum products sold at higher prices than crude oil, such as diesel and kerosene, came into force on February 5, 2023. For lower valued products like naphtha and fuel oil, a separate cap of $45 was established. Attribution: European Union officials and G7 communications
There was ongoing pressure from the White House to maintain the price ceiling on Russian oil as a central tool of the sanctions regime. Attribution: White House statements