MOSCOW (Pakistan Point News / Sputnik - 07th December, 2022) Australia joined the restrictions on Russian oil prices imposed by the G7 countries, the Australian Foreign Ministry said on Wednesday.
"Australia has joined the G7 in implementing a price cap on Russian oil. On 2 December 2022, G7 countries plus Australia agreed to the price cap of $60 per barrel of seaborne Russian-origin crude oil. The price cap is designed to maintain a reliable supply of oil to the global market while reducing the revenue Russia earns from oil," the ministry said.
Australia has already banned the import, purchase, and transportation of Russian oil and gas, oil products, and coal from April 25, 2022, the ministry added. At the same time, it is allowed to provide financial support and financial services for the import, purchase, and transportation of Russian oil, if its price is not more than $60 per barrel, the ministry noted.
According to the ministry, Australia is also planning to introduce additional price caps on refined petroleum products in February 2023.
Western countries have been seeking ways to limit Russia's income from oil and gas exports since the country launched a military operation in Ukraine on February 24. In October, the EU introduced the eighth package of sanctions against Moscow, which included a legislative basis for setting a price cap for maritime shipments of Russian oil to third countries. In addition to the price cap for Russian crude oil, the package provides for the introduction of a ceiling for Russian refined products starting from February 5, 2023.
Last week, the EU reached an agreement on setting a price cap on Russian oil at $60 per barrel, which went into effect on Monday. The cap will be reviewed every two months to remain at 5% below the International Energy Agency benchmark.
