Switzerland introduced a “price ceiling” for russian oil products
16.02.2023 - 09:30
Switzerland has set price restrictions on oil products of russian origin.
The sanctions came into effect on February 15, according to the press release of the Swiss Federal Council.
“The Federal Council today aligned its sanctions regime on crude oil and petroleum products from russia with the latest package of sanctions adopted by the European Union. The new measures come into effect at 18:00 on February 15, 2023,” the message reads.
According to the restrictions, services facilitating trade, mediation and transportation of such products as fuel oil from russian federation are allowed if the cost does not exceed $45/barrel. The price of gasoline, diesel fuel or kerosene (a product of oil distillation) is limited to $100/barrel.
We will remind, since February 5, the sanctions regarding the import of russian oil products to the EU started to come into force. In particular, we are talking about gasoline, diesel, kerosene, oil and fuel oil. The basis for the restrictions were sanctions approved by 27 member states in June 2022.
The Council of the EU notes that a transitional period of 55 days is provided for vessels carrying russian petroleum products, which have purchased and loaded the products by February 5, 2023 and will unload them by April 1, 2023.
Also, on February 5, the mechanism for determining the limit prices for sea transportation of russian oil to third countries came into force.
A limit price of $45 per barrel was set for petroleum products traded at a discount to crude oil. The $100 per barrel price refers to highly refined petroleum products that trade at a premium to raw oil.
