EU embargo on Russian oil supply comes into effect

The information was reported in the Official Journal of the European Union.

Also, the price cap for Russian crude oil, introduced by the EU, the G7 and Australia, comes into effect today.

Now Russian oil can be bought only at a price that does not exceed USD 60 per barrel.

The embargo on Russian oil has been agreed back in May, providing an exception for Bulgaria and oil that is to be supplied through the Druzhba pipeline.

Also, the new sanctions will prohibit European companies from insuring the transportation of Russian oil by sea to third countries. As early as February 5, 2023, similar restrictions will also apply to Russian oil products.

The restrictions mean that companies will not be able to provide insurance and other services for the sea transportation of Russian oil to third countries if it is bought at a price above the price ceiling.

• The G7 leaders agreed on restrictive measures regarding establishing a price cap at the June summit, but since then have been negotiating on the details of its implementation. In October, the oil price cap was included in the EU sanctions package. The restriction applies to Russian oil and oil products delivered by sea transport. If oil is purchased at a higher price than the set price, the service of its sea transportation will be prohibited. Such a step is designed to deprive Russia of additional income from oil sales.
• On December 4, Hungary was released from the application of the oil price limit after negotiating with the EU. The head of Hungary’s Ministry of Foreign Affairs, Péter Szijjártó, believes that such a decision "once again allowed to protect Hungary's energy security."