According to the EU’s energy policy chief, the European Union hopes to have its regulations in place for the G7 plan to limit the price of Russian crude oil.
The EU will prohibit Russian crude oil imports starting on that date and Russian oil products starting February 5, depriving Russia of its oil revenues.
This will force Russia, one of the top oil exporters and producers in the world, to look for alternative markets.
A G7 plan will also allow shipping companies to assist in Russian oil exports but at limited prices. This plan will also take effect on Dec. 5.
“Our sanctions will include crude oil for EU member countries so we won’t buy Russian crude oil beginning December 5, and we covered any oil price gap for international purchasers with our eighth package,” EU energy commissioner Kadri SIMSON said.
She said this on the sidelines at the COP 27 climate summit in Egypt, “If the G7 decides the exact price cap amount, we will also need a council mandate.”
Simson stated that there was enough time. “We were able to negotiate in a matter of days.” The overall framework is now in place.
According to the International Energy Agency, this week’s decision to deny Moscow revenue would increase uncertainty in oil markets and put pressure on diesel prices.
Washington will issue guidance on the Russian oil price cap in the coming days and is open to some “hiccups” during its implementation, according to a U.S. State Department official.
A spokesperson for the EU stated that the G7 would continue to exchange information in light of the Dec. 5, deadline.
The official stated that the goal was to reach an agreement with G7 by Dec 5th, and added that it was aware there is not much time.
“I’m sure you’ll hear from me within the next week.”
