|07 December 2022
The UK in partnership with the G7 countries, Australia and the European Union, have agreed to set the price cap on Russian crude oil traded by firms shipping oil to third countries at USD$60. This price will be kept under review. The UK and its coalition partners will only provide services facilitating the maritime transport of Russian oil if firms trade at or below this cap.
When did the Oil Price Cap come into effect?
The Oil Price Cap on Russian crude oil came into immediate effect in both Jersey and the UK on 05 December, and the Oil Price Cap on Russian refined oil products will come into effect from the 05 February 2023.
General Licences to facilitate the Oil Price Cap can be found on the OFSI website here. These General Licences are also in effect in Jersey. This includes wind-down General Licence INT/2022/2469656 which permits contracts to ship Russian oil traded at a point above the price cap where the Russian oil is loaded before 05 December 2022 and unloaded at the destination port by 19 January 2023.
The UK Government has released updated guidance on the Oil Price Cap, which can be found here. A number of new forms have been created by the UK Government in relation to the Oil Price, namely:
- Breach Reporting Form;
- Extraordinary Situation Licence Application Form; and
- Emergency Use of Exemption Notification Form.
Jersey versions of these forms are being developed and will be available for use in due course.
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