The Ceiling Will Hit Russian Oil

by Olha Povaliaieva
Sunday, December 4, 2022
The Ceiling Will Hit Russian Oil

European Council voted to adopt price restrictions for Russian petroleum

Reuters reports that on December 1, the members of the European Council were able to reach a consensus. The politicians set a "ceiling" on the oil prices of the aggressor country. It is reported that the offered price will be 5% below the market price — $60 per barrel. The restriction concerns the price of offshore oil.

All EU countries will then consider the decision of the European Council. If all countries vote in favour of such a restriction, it will already come into force. It is expected that the new prices will be effective from mid-January. There is a transitional period at the moment — its size is 45 days. The "benefits" will be valid only for oil that was loaded on the ships before December 55. Also, according to the transition period terms, "exemption" oil should reach its destination by January 19y.

The "ceiling" for aggressor goods is reviewed every 2 months. It is worth noting that Ukraine requests to pay no more than $30 for the Russian barrel.

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