G7 and Australia reach consensus on price caps for Russian-origin petroleum products

Two price levels, for “premium-to-crude” and “discount-to-crude” petroleum products

Russian-origin petroleum products

Members of the “price cap coalition”—Australia, Canada, the European Union, France, Germany, Italy, Japan, the United Kingdom, and the United States—reached consensus on the maximum prices for seaborne Russian-origin petroleum products.

A statement of the G7 and Australia explains that:

  • The price cap policy is intended to prevent Russia from profiting from its war against Ukraine.
  • There are two price levels for petroleum products:
    • One for “premium-to-crude” petroleum products—such as diesel, kerosene and gasoline—with a maximum price of U.S. $100 per barrel
    • Another for “discount-to-crude” petroleum products—such as fuel oil—with a maximum price of U.S. $45 per barrel
  • The price caps on petroleum products will be implemented across jurisdictions on 5 February 2023 or soon thereafter.
  • Respective regimes are expected to include time-limited exceptions for transactions involving petroleum products that are loaded onto a vessel at the port of loading prior to 5 February 2023.

For more information on sanctions and other responses to Russia’s war on Ukraine, visit KPMG’s dedicated website.

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
E: ivaysfeld@kpmg.com

Amie Ahanchian
E: aahanchian@kpmg.com

Christopher Young
E: christopheryoung@kpmg.com

Gisele Belotto
E: gbelotto@kpmg.com

George Zaharatos
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
E: jlibby@kpmg.com

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