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US, allies agree on $100 and $45 as maximum price levels for Russian petroleum products

The data was released by the US Treasury on Friday

WASHINGTON, February 4. /TASS/. The Price Cap Coalition has agreed to set two price levels for seaborne Russian petroleum products, the G7 and Australia said in a joint statement released by the US Treasury on Friday.

"The maximum price for premium-to-crude products will be 100 US dollars per barrel and the maximum price for discount-to-crude products will be 45 US dollars per barrel," the statement reads. The coalition, which is composed of Australia, Canada, the European Union, France, Germany, Italy, Japan, the United Kingdom, and the United States, considered "the market price dynamics including pricing of these products relative to crude oil," when making the decision.

According to the US and its allies, the price caps on petroleum products will be implemented across those countries on February 5 "or very soon thereafter."

"We recommend that importers of seaborne Russian-origin crude oil and petroleum products in countries outside our jurisdictions continue leveraging the price cap to purchase discounted Russian oil and petroleum products," the Price Cap Coalition added.

According to the coalition, it "commits to undertake a review of the price cap on crude oil in March to ensure that it continues to meet its twin goals, to further diminish Russian revenues while supporting energy market stability." The coalition members are also prepared "to review and adjust the maximum price as appropriate."

Commenting on the decision, US Treasury Secretary Janet Yellen said, "Today’s agreement builds on the price cap on Russian crude oil exports that we set in December and helps advance our goals of limiting Russia’s key revenue generator <…> while promoting stable global energy markets.".

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