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EU’s Official Journal enshrines decision to impose $60 price cap on oil from Russia

The price cap on petroleum products from Russia was to come into force in the EU since February 5, the procedure for determining the price has yet to be agreed upon

© Yegor Aleyev/TASS

BRUSSELS, December 4. /TASS/. The European Union published on Saturday evening in the EU Official Journal a decision to introduce a price cap on oil from Russia from December 5 at $60 a barrel, provided that oil is sold at a price at least 5% below the market price.

"It shall be prohibited to provide, directly or indirectly, technical assistance, brokering services or financing or financial assistance, related to the trading, brokering or transport, including through ship-to-ship transfers, to third countries (countries outside the EU - TASS) of crude oil or petroleum products which originate in Russia or which have been exported from Russia," the document said.

The annex to this document specifies that a crude oil price tood at $60 per barrel. The price cap on petroleum products from Russia was to come into force in the EU since February 5, the procedure for determining the price has yet to be agreed upon.

Many European experts are sure that this decision will only lead to further imbalance and fragmentation of the oil market.

The Russian Federation has earlier announced that it would not supply energy resources to those countries, which would limit the prices for them; it considers the price cap unacceptable and intends to work only on market conditions.

A number of European experts have expressed fears that attempts to introduce a price cap on Russian oil will deal a new blow to the global oil market and seriously undermine the European oil transportation industry, similar to the way the ban on leasing aircraft to Russia caused serious damage to European companies specializing in this sphere.

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