As the deadline for implementing the plan and for the European Union’s ban on Russian crude oil approaches on December 5th, the specifics of the maximum price are being finalised. However, debates over the price’s current level are still going on.
The proposal attempts to keep Russian crude present on the international market in order to prevent higher prices while lowering Moscow’s oil income to their pre-Ukrainian War levels.
The price level would be fixed in dollars per barrel and will be reviewed on a regular basis, not as a reduction from market prices, coalition officials told Reuters on last Thursday.
The official said that, according to the shipping rules, which the Wall Street Journal was the first to talk about it, any oil is reselling while the raw is still on its way to the empty destination that must be made at or less than the level of the price ceiling.
The official noted that until crude oil is refined into other derivatives, the price ceiling will be applied once more if it is re-downloaded on a carrier to ship it to a different location.
The maximum, according to the official, will not include shipping fees or any other trade-related or transportation-related expenses.
The guidelines on the oil price cap, he continued, are still being prepared and will be released before December 5th.
The Group of Seven intends to impose a price cap on oil from Russia that is transported by sea.
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