EU To Bar Insurance On Ships Carrying Russian Oil Above Price Cap For 90 Days

BRUSSELS (Pakistan Point News / Sputnik - 04th December, 2022) The European Union will place a ban on insuring and financing vessels transporting Russian oil above the agreed price cap for three months, the European Commission said on Saturday.

On Friday, the EU reached an agreement on setting a price cap on Russian oil at $60 per barrel. The agreement reportedly provides for a review mechanism to keep the price cap at 5% below the market value. The G7 nations and Australia also agreed to set a $60 price ceiling on oil from Russia, which will enter into effect on December 5.

"If a third country flagged vessel intentionally carries Russian oil above the price cap, EU operators will be prohibited from insuring, financing and servicing this vessel for the transport of Russian oil or petroleum products for 90 days after the cargo purchased above the price cap has been unloaded," the statement said.

A senior EU official told journalists in Brussels that such sanctions would be applied if a vessel arrives in Europe carrying Russian oil above the price cap. Each EU member state will prosecute European operators non-compliant with the scheme, the source said.

Earlier in the day, Kremlin spokesman Dmitry Peskov said that Russia would not accept the price cap imposed on its oil abroad and would decide how to operate under new circumstances.