EU Publishes Decision on Price Cap for Russian Oil

The European Union has published its decision on setting a price cap for oil imported from Russia in its official journal. The document includes an appendix with a table stating that the cap is set at $60 per barrel.

According to the decision, the provision of direct or indirect technical assistance, brokering services, or financing and financial assistance for the export of oil or petroleum products from Russia to third countries is prohibited.

It is noteworthy that on the evening of December 2, the EU officially confirmed the decision regarding the price cap on Russian oil, which was adopted after prolonged discussions. The decision was also supported by G7 countries and Australia.

A senior source in Brussels explained that the $60 level was chosen based on the fact that it is slightly lower than the market prices for Russian crude. The price regulation mechanism ensures that the price cap for Russian oil will always remain below market value, despite ongoing fluctuations in the market.