EU countries prepare ceiling price for Russian refinery oil works

European Union (EU) countries are expensive to apply a ceiling price of 100 dollars per barrel of diesel and 45 dollars per barrel of liquid fuel from Russian refinery oil works.

According to the news of the Politico website, the EU, whose embargo on Russian refinery oil artifacts will come into effect on February 5, has taken action to limit the price of these artifacts.

The EU Committee, aiming at Russia’s oil revenues, proposed to the member countries, together with the G7 countries, to apply two different ceiling prices to Russia, namely high-expensive and low-value refinery products.

In this context, the EU demanded a ceiling price of $100 per barrel for Russian diesel and kerosene, and $45 per barrel for cheaper fuel oil and light-colored petroleum products.

The EU demanded that the aforementioned ceiling prices be put into effect on February 5, when the Union’s embargo on Russian refinery oil works will come into effect.

Thus, the EU and the G7 will impose restrictions on Russia’s exports of refined petroleum products to third countries.

Western countries’ companies export refinery oil products from Russia, but the ceiling price to be determined for the work in question underwill be able to provide services if sold.

At this level, the representatives of the member states take up the EU Committee proposal. The unanimous consent of the EU countries is required for the price ceiling to come into effect.

Once unanimous within the EU is achieved, the G7 countries will also be asked to join the ceiling price.

On the other hand, the decision of EU countries to ban imports of oil transported by sea from Russia and to impose a ceiling price of 60 dollars per barrel began on 5 December.

If Russian oil is sold to third countries at a higher price than the set price, companies in the G7 and EU countries cannot provide various services such as transportation, insurance and brokerage for this oil. In order to provide these services, Russian oil must process below the ceiling price.