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The governments of all EU countries have today approved in writing the decision to introduce a ceiling on the price of Russian crude oil transported by sea, the ceiling being 60 dollars per barrel. This was confirmed today by the European Commission and stated that this paves the way for the publication of the decision in the Official Bulletin of the EU and its entry into force on December 5, BTA reported, citing Reuters.
The governments of all EU countries have today approved in writing the decision to introduce a ceiling on the price of Russian crude oil transported by sea, the ceiling being 60 dollars per barrel.
This was confirmed today by the European Commission and stated that this paves the way for the publication of the decision in the Official Bulletin of the EU and its entry into force on December 5, BTA reported, citing Reuters.
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The measure is an idea of the G-7, and Australia has joined it.
It accompanies the EU embargo on the import of sea-transportable crude oil from Russia, which also came into effect on December 5.
"The G7 and all member states have taken a decision that will hit Russia's revenues even harder and reduce its ability to wage war in Ukraine," EC President Ursula von der Leyen said in a statement released today.
"It will also help us stabilize global energy prices, which will benefit countries around the world that are now facing high oil prices," she added.
From Monday, the EU will not buy any seaborne Russian crude, which made up 94 percent of all Russian crude supplies to the bloc's 27 countries, Reuters noted, citing EU explanatory guidance.
The EU will also stop all imports from February 5 of Russian oil products.
Regarding these oil products, the G7 will also introduce a price ceiling at a later stage, using exactly the same mechanism as for crude oil, the EU explained.
The EU has agreed a ceiling of $60 on seaborne Russian oil
From Monday, EU-registered shipping companies will only be able to transport Russian crude oil if it sells below or at $60 a barrel, with every two months this price ceiling will be revised, as the first review will be available in mid-January.
The aim of this will be to keep the price of seaborne Russian crude at least 5 percent below the market price.
Since key shipping companies and insurance firms are based in the G7 countries, the price cap will make it very difficult for Moscow to sell its oil at a higher price.
Russian tankers loaded with Russian crude before December 5 will be exempted from the price cap for 45 days or until January 19.
If there are changes to the price cap in the review, then there will be a 90-day grace period to ensure that no ship is stranded at sea with oil bought at an unacceptable price.
The review of the price ceiling is a specific European mechanism that will require unanimity from the 27 member countries.
Once a change in the price ceiling is agreed, it will be discussed at the G-7 level, which includes the US, Canada, Great Britain and Japan.
The EU will prohibit the insurance for 90 days of third-party ships carrying Russian oil at a price above the ceiling, it is also stated in the explanations of the EC regarding the introduction of the price ceiling, adds TASS.
And if ships flying the flag of one of the EU countries violate the ceiling, a penalty provided for in the national legislation of the member countries will be imposed, the instructions also say.
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