US to Implement Price Cap on Russian Oil Products Starting February 5

[Asia Economy New York=Special Correspondent Joselgina] The United States will implement a price cap on petroleum products from Russia starting February 5 next year, following the price cap on Russian crude oil.

The U.S. Department of the Treasury confirmed this on the 30th (local time) through a document titled 'Preliminary Guidance on the Price Cap Policy for Russian Petroleum Products.' The price cap on Russian petroleum products will begin at 12:01 AM Eastern Time on February 5 next year. Russian petroleum products shipped before this time and unloaded before April 1 next year are not subject to the price cap.

The price cap on petroleum products, like crude oil, applies from the time the products are loaded for maritime transport until they are first unloaded outside of Russia. The Treasury explained, "This means that the price cap will no longer apply to Russian petroleum products that have cleared customs in countries other than Russia." Additionally, if Russian petroleum products or crude oil are processed in countries other than Russia, they are not subject to the price cap.

Earlier, the United States, the European Union (EU), and 27 other countries agreed to introduce this price cap to prevent Russia, which invaded Ukraine, from funding its war expenses through oil sales and to stabilize oil prices. The price cap on crude oil began on the 5th of this month. If the price exceeds the cap of $60 per barrel, maritime transport companies from the respective countries cannot provide insurance and financial services.

In response, Russia has decided to ban the sale of oil and petroleum products to countries and companies that implement the Russian crude oil price cap for a temporary period of five months from February 1 to July 1 next year.

This content was produced with the assistance of AI translation services.