Brussels: Europe and the Arabs
Today, Sunday, the implementation of the European decision announced by the Council of Member States of the European Union on Saturday begins, and relates to setting a maximum price limit for petroleum products that fall under the code CN 2710 and that originate in Russia or are exported from it.
The cap level was set in close collaboration with the Price Cap coalition, and will become applicable from February 5, 2023. A transition period of 55 days is expected for ships carrying Russian petroleum products, which were previously purchased and loaded on the ship until February 5, 2023 and has been completed. Released before April 1, 2023.
In addition, the Board will revisit the crude oil price cap mechanism from mid-March and the review will take place regularly every two months.
According to a European statement, this is the price of a barrel of petroleum products from Russia that is exempt from the embargo:

- Maritime transportation of petroleum products to third countries

- Technical assistance, brokerage services, financing or financial assistance related to the marine transportation of petroleum products to other countries.

The first price ceiling for petroleum products that are traded at a discount to crude oil has been set at $45 per barrel, while the second price ceiling for petroleum products that are traded at a premium to crude oil has been set at $100 per barrel.

Brussels said through the statement that in the face of Russia's war of aggression, the European Union stands firmly with Ukraine and its people, and is unwavering in its support for Ukraine's independence, sovereignty and territorial integrity within its internationally recognized borders, as well as Ukraine's inherent right to self-defense. against Russian aggression.
 
It is reported that on October 6, 2022, the Council of the European Union adopted Resolution (CFSP) 1909/2022, which provided an exemption from the ban on the provision of maritime transport and the prohibition on the provision of technical assistance, brokerage services, financing or financial assistance, related to the sea transport of crude oil or petroleum products to third countries. that originate in or are exported from Russia, and that were purchased at or below a predetermined maximum price approved by the Price Cap Alliance. This exemption is intended to mitigate negative consequences for energy supplies to third countries and reduce price hikes driven by abnormal market conditions, while limiting Russia's oil revenues.
On December 3, 2022, the Council adopted Resolution (CFSP) 2022/2369, which capped the price of crude oil at US$60 per barrel.