Switzerland issues price cap for russian petroleum products

From February 15, Switzerland is introducing a price cap for russian oil products.

This is stated in the press release of the Federal Council of Switzerland.

"The Federal Council today aligned its sanctions regime on crude oil and petroleum products from russia with the latest package of sanctions adopted by the European Union. The new measures come into effect at 18:00 on February 15, 2023," the statement said.

It is noted that in response to russia's violation of Ukraine's sovereignty and territorial integrity, the EU issued price caps for oil products from Russia on February 4. At the same time, the EU also adopted the relevant transitional provisions.

The Federal Department of Economic Affairs, Education, and Research (EAER) approved the price cap for russian crude oil on December 8, 2022. Now, the Federal Council has also adopted new transitional provisions and price restrictions for petroleum products from russia from February 15.

"Services that facilitate the trade, brokerage, and transportation of products such as fuel oil from Russia are now allowed only if the price does not exceed $45 per barrel. The price of petrol, diesel, or kerosene is capped at $100 per barrel. These provisions aim to mitigate the adverse consequences on the supply of energy resources to third countries, reduce price surges caused by russia's armed aggression against Ukraine, and limit russia's income from oil," the statement emphasizes.

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In December, the G7 countries plus Australia announced they agreed to set a "price cap" for oil exported from the russian federation by the sea at $60 per barrel.

The president of the russian federation, vladimir putin, signed a decree prohibiting the sale of russian oil and petroleum products if the countries prescribed a price cap in the contracts.

It was previously reported that moscow might reduce oil production by 500,000 to 700,000 barrels per day in response to the G7 limiting prices for russian oil exports. Oil revenues make up the main part of the russian budget.