Buyers of crude oil from China have suspended the purchase of some Russian oil, waiting for details from the United States and Western countries on the level of the price limit for oil from the Russian Federation, which will be set on December 5.

This is reported by Bloomberg.

China is hesitant to close deals until more is known about the exact price ceiling for Russian oil.

Currently, several shipments of Russian ESPO oil for December delivery remain unsold.

ESPO brand oil is popular with refineries in China due to its high diesel yield and short delivery distance.

If the price is set too low, the party responsible for delivery and insurance coverage (which may be the seller or the buyer, depending on the terms of the contract) may have to seek services from suppliers outside the EU.

This will complicate the process and radically change the economic component of the deals.

Banks that finance the purchase of oil are afraid of sanctions and a rapid increase in freight rates.

Suppliers are also evaluating the possibility of sanctions or fines from the EU.

China and India have become vital outlets for Russian oil after most other buyers avoided Russia following its invasion of Ukraine, it said.

Restrictions on Russian oil prices: what is known

According to Bloomberg, on November 23, the G7 countries plan to announce at what level they will set the upper price limit for Russian oil.

Reuters wrote that the G7 countries and Australia agreed to set a fixed maximum price for Russian oil.

Price restrictions will come into effect on December 5 for oil and February 5 for oil products.

The goal of the restriction is to keep Russian oil on the market to avoid price spikes and at the same time reduce Moscow's income.

However, Russia has said it will not sell oil to countries that impose restrictions. 

Instead, Moscow will redirect supplies to "market partners" (apparently referring to India and China) or cut production.

Despite loud statements, the Russian Federation is trying to maintain oil exports.

A number of global companies 

 to transport Russian oil under sanctions.

But this does little to help the aggressor.

According to the same publication Bloomberg, Russia cannot find new markets where it will sell its oil, which must be done by December 5

Meanwhile, Great Britain continues to import Russian oil using various schemes and loopholes.

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