An oil tanker moored at the Sheskharis complex, part of Chernomortransneft JSC, a subsidiary of Transneft PJSC, in Novorossiysk, Russia ©AP/Copyright 2022 The AP. All rights reserved.A price cap on seaborne Russian crude agreed by Australia, the EU and the G7 nations will come into force on Monday, with a cap on refined petroleum products set for February next year.
The agreement, reached after months of negotiations, sets the price of oil per barrel at a maximum of 60 US dollars or around 57 euros.
But Ukraine had called for a lower limit of $30 a barrel, arguing that a higher level would have no impact on the Russian economy. Meanwhile, Moscow has said it will continue to sell its oil at market prices.
Institutions in the G7 countries insure most tankers and unless the vessels agree to the cap, they will not be able to get cover. Therefore, even countries that have not accepted the cap could be forced to apply it, limiting Russia’s energy export earnings.
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