21 Feb 2023 15:16

Novak: Russia still discussing ban on sale of petroleum products under price cap

MOSCOW. Feb 21 (Interfax) - Russian authorities are still discussing the possibility of introducing a ban on companies selling petroleum products under the price cap, similar to the ban imposed on oil sales.

"As for the ban on supplies [of petroleum products at the price cap], this issue is now being studied by ministries and companies," Russian Deputy Prime Minister Alexander Novak told journalists

"We will discuss this issue," he said.

As reported, the G7 and EU countries, planning to maintain the supply of oil and oil products on the world market, but also limit Russian revenues, have prohibited their companies to participate in the provision of maritime transportation services or their financing and insurance. An exception to the rule can be made if oil and oil products are sold at a price no higher than a set cap. The embargo on oil entered into force on December 5, 2022, on petroleum products - from February 5, 2023. So far, the ceiling on oil is set at $60 per barrel, on light oil products - $100 per barrel, on heavy oil products - $45 per barrel.

Russia categorically rejects such restrictions, calling them non-market measures, and forbade its companies to use the provisions on the price cap in their contracts. The relevant orders and recommendations for uncovering violations have been issued with respect to oil, but not yet for petroleum products.