The EU Council decided on Saturday to set two price caps for petroleum products which originate in or are exported from Russia. That’s according to a press release by the EU Council, Ukrinform reports.

These are the price per barrel at or below which petroleum products from Russia are exempt from the prohibition to provide:

- maritime transport of petroleum products to third countries and
- technical assistance, brokering services or financing or financial assistance, related to the maritime transport of petroleum products to third countries.

The first price cap for petroleum products traded at a discount to crude oil is set at $45 per barrel, while the second price cap for petroleum products traded at a premium to crude is set at $100 per barrel.

he level of the cap was established in close cooperation with the Price Cap Coalition and will become applicable as of February 5, 2023. A transitional period of 55 days is foreseen for those vessels carrying Russian petroleum products, which were purchased and loaded prior to Feb 5 and unloaded prior to Apr 1, 2023.

In addition, the Council will revert to review the price cap mechanism for crude oil as of mid-March and the review will occur regularly every two months.

“In the face of Russia's war of aggression, the EU stands resolutely with Ukraine and its people, and is unwavering in its support of Ukraine's independence, sovereignty and territorial integrity within its internationally recognised borders, as well as of Ukraine’s inherent right of self-defence against the Russian aggression,” the statement reads.

On October 6, 2022, the Council introduced an exemption from the prohibition to provide maritime transport and to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below a pre-established price cap agreed by the Price Cap Coalition.

That exemption is intended to mitigate adverse consequences on energy supply to third countries and reduce price surges driven by extraordinary market conditions, while limiting Russian oil revenues.

On December 3, 2022, the Council established the price cap for crude oil at $60 per barrel.