Price cap on Russian crude oil exports due to come into effect

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By Euronews and AP
An oil tanker moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia
An oil tanker moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia   -   Copyright  AP/Copyright 2022 The AP. All rights reserved.

A price ceiling on Russian seaborne crude oil agreed upon by Australia, the EU and G7 nations is due to come into effect on Monday, with a cap on refined petroleum products set for February next year.

The deal, reached after months of negotiations, sets the oil price per barrel at a maximum of US$60 or roughly €57.

But Ukraine had asked for a lower cap of US$30 a barrel, arguing that any higher won't impact Russia's economy. Meanwhile, Moscow has said it will continue selling its oil at market price.

Institutions in G7 countries insure most oil tankers and unless the vessels accept the price cap, they won't be able to get coverage. Therefore, even countries that haven't agreed to the ceiling could be forced to enforce it, limiting Russia's energy export earnings.

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