Russian petroleum products will no longer be considered to be of Russian origin and subject to the price cap once they are transformed in another jurisdiction, the US Treasury announced on Friday.
WASHINGTON (Pakistan Point News / Sputnik - 30th December, 2022) Russian petroleum products will no longer be considered to be of Russian origin and subject to the price cap once they are transformed in another jurisdiction, the US Treasury announced on Friday.
"Once Russian petroleum products or Russian oil are substantially transformed (e.g., subjected to any of the refining processes listed below) in a jurisdiction other than the Russian Federation, they are no longer considered to be of Russian Federation origin, and thus the price cap no longer applies," the Treasury said.
The Treasury also said it does not consider blending operations, like gasoline or crude blending to be substantial transformation for the purposes of the crude oil determination.
"OFAC would not consider petroleum products to be of Russian Federation origin solely because they contain a de minimis amount of Russian petroleum products left over from a container or tank," it added. "For purposes of assessing whether petroleum products are of Russian Federation origin, U.S. persons may reasonably rely upon a certificate of origin but should exercise caution if they have reason to believe such certificate has been falsified or is otherwise erroneous."
