EU oil sanctions against Russia have entered into force

Sofiia Telishevska

Today, December 5, EU oil sanctions against Russia came into effect.

This is reported on the website of the European Council.

"The price cap level was established in close cooperation with the Price Cap Coalition and will be applied from December 5, 2022," the Council notes.

The limit price for oil, oil products and oils originating from or exported from Russia is set at $60 per barrel. The price will be reviewed every two months to respond to market conditions. During the review, the price will be set 5% lower than the average market price for Russian oil and oil products, calculated on the basis of data from the International Energy Agency.

The cap on the price of Russian oil would put a cap on price fluctuations based on extraordinary market conditions and would sharply reduce Russiaʼs oil trade revenues after it went to war against Ukraine. Such a price cap is also intended to stabilize global energy prices and mitigate negative consequences for energy supplies to third countries.