Russian Price Cap Is Working, UK Says
The global price cap on Russian crude oil is "successfully curtailing" Russia's ability to use oil sales revenue to finance its war in Ukraine, the U.K.'s Office of Financial Sanctions Implementation said Feb. 2. OFSI said the discount "between Russia’s flagship crude oil grade and global benchmarks" increased by more than 50% since November to around $40.
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The U.K. also provided guidance on the upcoming G-7 price cap on refined Russian oil, outlining various effective dates, authorizations and wind-down periods previously agreed to by G-7 members and the EU (see 2212300034). The U.K. reminded "market participants" of the wind-down period for refined oil products and of the upcoming maritime services ban for shipping the products, set to take effect Feb. 5.
To comply with the price cap, OFSI said, industry players must abide by the three-tier attestation model and the requirements for record-keeping and reporting listed in the updated guidance and general licenses. Industry must ensure these requirements are met before the oil products cap comes into effect, OFSI said.