The Treasury Department on Tuesday released new guidance on policies for the seaborne shipping of Russian oil ahead of a price cap due in early December.
Guidance to complement the UK’s newly released guidance policyoutlines how U.S. service providers will continue to transport Russian seaborne oil loaded before December 5. price cap About that oil devised by the G7 countries, the EU and Australia.
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Its so-called price differential coalition seeks to deprive Russia of the financial resources to continue its war with Ukraine.
A senior Treasury official told reporters on Tuesday that the Treasury expects other coalition countries to issue similar guidance in the coming days to implement price differential policies.
“Consistent with the coalition’s goal of allowing Russians to maintain the flow of foreign oil while reducing Kremlin revenues, we will make it as easy as possible for market participants to implement the Dec. 5 price cap policy.” We are taking these steps to be able to do so,” the official said.
Delivery and customs brokerage presidential decree Work on the maritime transport of Russian oil.
According to the guidance, service providers will be required to be loaded and shipped no later than 12:01am ET on December 5th and to be delivered to their destinations before 12:01am ET on January 19th. There is no financial penalty for the carriage of crude oil of Russian origin that is unloaded at ports. .
The guidance also outlines a “safe harbor” from compulsion for providers to follow a record-keeping and proof process that oil was purchased at or below the price cap.
Russian oil imports are banned from the United States under a policy that takes effect December 5th.
Treasury officials said they have already seen evidence of redirection of products from US and European markets that no longer exist in the Russian oil market.
“I think there was less than 90,000 barrels of oil in Europe at this point,” said one official.
Russian oil production is autumn 1.4 million barrels per day by next year.
The Price Cap Coalition has yet to decide how high oil prices will be capped, but guidance says the cap will be set after a “technical exercise” conducted by the coalition.
A senior Treasury official said a decision would be made “in the coming days.”