U.S. determination regarding price cap on crude oil of Russian origin
The price cap on crude oil of Russian origin is $60 per barrel.
The price cap on crude oil of Russian origin is $60 per barrel.
The U.S. Treasury Department published a determination that effective December 5, 2022, the price cap on crude oil of Russian origin is $60 per barrel.
Read the determination [PDF 603 KB]
According to a related Treasury fact sheet, the members of the G7 (United States, Canada, France, Germany, Italy, Japan, and United Kingdom) and Australia) joined the EU in adopting a price cap of $60 per barrel on seaborne crude oil of Russian origin.
The price cap is intended to restrict the revenue Russia receives to fund its war in Ukraine, while also maintaining a reliable supply of oil onto global markets.
A broad range of services are to be banned—including maritime insurance and trade finance—related to the maritime transport of crude oil of Russian origin unless purchasers buy the oil at or below $60 per barrel. On February 5, 2023, the ban on services will extend to the maritime transport of Russian-origin petroleum products unless the products are sold at or below a price cap to be announced before February 5, 2023.
For more information on sanctions and other responses to Russia’s war on Ukraine, visit KPMG’s dedicated website.
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