G7 seeks two price caps for Russian refined products - Reuters

The G7 nations intend to set two distinct price caps on Russian refined products in February, Reuters reports.

PHOTO: European Parliament building. Getty Images

G7 nations and the EU introduced a $60/bbl price cap on Russian crude oil from 5 December. The coalition could announce further price caps on Russian refined products before the EU embargo on imports of refined Russian products kicks in on 5 February.

Setting a price cap on refined Russian oil products could be complicated because of the wider range of oil quality specifications and prices for these products.

The EU now envisages two price caps: one for oil products such as diesel and kerosene, which typically trades at a premium over crude, and another for products such as fuel oil, which historically trades at a discount, Reuters reports citing comments from a G7 official.

Meanwhile, Russia has warned that it will not accept any price cap measures and has threatened to cut crude exports to those countries that get behind price caps in response.

By Nithin Chandran

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