The Price Cap Coalition including the European Union, Australia, Canada, Japan, the United Kingdom and the United States, has adopted price caps for seaborne Russian petroleum products exports. The price cap for premium-to-crude petroleum products (diesel, kerosene, gasoline) is set at US$100/bbl, while the price cap for discount-to-crude petroleum products (fuel oil, naphtha), is set at US$45/bbl. The price caps came into effect on 5 February 2023.
The measure includes a 55-day wind-down period for Russian petroleum products purchased above the price cap, provided it was loaded onto a vessel at the port of loading prior to 5 February 2023 and unloaded at the final port of destination prior to 1 April 2023.
In December 2022, the EU, G7 and Australia also implemented a price cap on seaborne Russian crude oil exports, which was set at US$60/bbl. The level of this price cap is to be reviewed every two months, with the next review coming in mid-March 2023. The price caps on petroleum products is also set to be reviewed regularly.
In late December 2022, in retaliation, Russia banned the supply of crude oil and petroleum products, from 1 February 2023 and for five months, to nations that abide by the EU and G7 price cap.