The European Union modified its last proposal for sanctions to limit the prices of Russian oil exportsdelaying its full implementation and moderating the main shipping provisions.
The bloc proposed adding a 45-day transition to the introduction of the cap, according to a document seen by Bloomberg. The proposed grace period would apply to oil loaded before December 5 — the date on which oil sanctions are due to take effect — and discharged before January 19, aligning the EU with a clause previously announced by the United States and the United Kingdom.
The EU ambassadors are scheduled to meet on Wednesday with the aim of approving the cap, as previously reported by Bloomberg. The diplomats are also expected to discuss the price level at the meeting. If they back the proposal, the EU and the Group of Seven could announce the limit that same night.
The cap would prohibit companies from providing shipping and servicessuch as insurance, brokerage and financial assistance, necessary to transport Russian oil anywhere in the world, unless it is sold below the agreed threshold.
Crude markets are under pressure with inventories at very low levels
The US has pressured its allies in Europe to modify an oil sanctions package, which included a total ban on services, that the bloc originally adopted in June, adding the price cap with two objectives: to keep Russian oil on the market to prevent price hikes and at the same time limit Moscow’s revenue.
The allies had previously discussed establishing a limit between US$40 and US$60 per barrela range from Russia’s cost of production to pre-war levels, but people familiar with recent discussions said it would likely be slightly higher.
The bill also softens a previous provision that would have indefinitely barred vessels carrying Russian crude purchased above the threshold from accessing European services for shipments of all oil regardless of origin.
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The document now states that a vessel that has “intentionally” transported Russian oil or petroleum products in excess of the cap will be prohibited from receiving services related to the transportation of Russian oil or petroleum products “for 90 days from the date of discharge of the purchased cargo. above the price limit.
The EU also proposes a 90-day transition in case of future changes in the level of the maximum price.
Most of the G7 nations and the EU plan to stop importing Russian crude this year. The provisions for refined petroleum products, including a cap on those prices, will take effect in February.
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