The European Union has finally agreed to set a limit on Russian oil prices at $60 per barrel. Funny enough, Russian crude had been trading near this range even before the restriction was imposed. In early December, the EU, together with the G7 and Australia, officially imposed a price cap on oil exported from Russia. The new rules will not affect oil shipments purchased above the limit price if they were loaded prior to December 5 and will be unloaded at the final destination by January 19, 2023. Another ban on seaborne crude imports from Russia came into force on December 5. From now on, EU operators are prohibited from shipping and providing insurance for Russian oil that costs more than $60. There are some exceptions, however. The embargo does not apply to some countries that have been exempted from the ban in the previous sanctions packages. For example, Bulgaria will be allowed to import Russian oil and petroleum products by sea until the end of 2024, and Croatia will buy Russian vacuum gas oil through late 2023. Besides, other countries continue to receive Russian oil through pipelines. The exception is made for those of them who have no alternative energy sources. Notably, even before the official ban was announced, many countries had refused to buy seaborne oil of Russian origin.
