14 Dec - Recorded webinar - the Russian oil price cap

Published: 14 December 2022

Michelle Linderman and Dj Wolff, Partners at Crowell & Moring who focus on Russia-related sanctions, talked about the price cap on Russian oil exports, whereby the G7, along with the European Union and Australia, have agreed to implement a price cap on Russian oil and oil products in order to reduce Russia’s revenues which are funding its war efforts in Ukraine while seeking to ensure energy security.  The price cap is designed to allow companies to provide shipment and insurance of Russian oil and oil products provided that the purchase price is below the agreed price cap, but how has it begun to work in practice, and what are the practical issues being experienced by the different actors in the supply chain?

Watch the recording of the BIMCO 15+15 webinar held on 14 December.

*** Captions are auto-generated and may contain errors ***

 

 

From 5 December 2022 the US, EU and UK will ban the maritime transportation of Russian oil and from 5 February 2023 the EU and UK ban will extend to Russian oil products.  This ban applies to the maritime transportation of the oil and oil products from a place in Russia to a third country, or from one third country to another third country.  Associated services such as insurance will also be banned.  However, the G7, EU and Australia have agreed to introduce a coordinated price cap exception allowing marine transportation and associated services provided that the price paid for the Russian oil and oil products is at or below an agree price cap.  In our discussion we answered the following questions:

  • How will the price cap work?
  • When does the price cap “start” and “stop”?
  • What are the “associated services” affected by the price cap requirements?
  • What requirements are imposed on affected services? 
  • Evidence of Price Paid and Attestation
  • Record Keeping
  • Reporting

 

This 30-minute webinar was held on 14 December 2022.

 

15+15 weekly webinars are a 30 minute webinar which includes a 15-minute presentation followed by a 15-minute Q&A.

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