A European Union (EU) embargo on Russian refined products will take effect on Feb. 5. as the eight-month transition period ends.
At the beginning of June last year, the EU released its sixth package of sanctions, including a complete import ban on Russian seaborne crude oil and petroleum products.
The latest sanctions prohibit vessels belonging to EU and G7 countries from carrying Russian refined products such as diesel, gas oil, and fuel oil.
The EU sanctions also include a ban on providing insurance for other services for vessels carrying Russian oil. The majority of these insurance companies are based in the EU or the UK.
Moreover, Western companies will be prohibited from providing various services, such as insurance, financing, and brokerage, for vessels carrying Russian refined products.
- Restrictions on export of Russian petroleum products to third countries
Negotiations are still ongoing with EU member states and G7 countries to discuss restrictions on Russia's exports of refined petroleum products to third countries.
The parties are working on applying two different price caps, with the European Commission proposing the EU set a $100 per barrel price cap on premium Russian oil products like diesel and a $45 per barrel cap on discounted products like fuel oil.
- Russian seaborne crude oil ban
The EU's prohibition of imports of seaborne crude oil from Russia and insurance and financing in the transport of Russian oil to third countries, particularly through maritime routes, came into effect on Dec. 5.
The EU, the G7 group of industrialized nations, and Australia agreed on a price cap for Russian oil at $60 per barrel that came into effect the same day.
In response to the price cap, Russian President Vladimir Putin signed a decree on Dec. 27 prohibiting the supply of crude oil and oil products to nations that use the cap for five months beginning Feb. 1.
Reporting by Ata Ufuk Seker in Brussels
Additional reporting and writing by Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr