Buying Russian oil above price cap will result in sanctions: US Treasury
According to a guidance document from the US Treasury Department, the price cap will be set by a joint process of the countries and will come into effect on December 5 for crude oil and February 5, 2023 for refined products.
Purchasing substantial amounts of Russian oil above the agreed price cap or providing fraudulent transaction data or documentation may result in penalties, the US Treasury Department said in a guidance document. for politics.
“Persons who make large purchases of petroleum above the price cap and knowingly rely on service providers subject to the Marine Services Policy, or persons who knowingly provide false information, documents or certifications to a such service provider, will have potentially violated maritime services ‘and may be the target of sanctions enforcement action,” the guidelines said on Friday.
According to the guidelines, the price cap will be set by a joint process of countries that agree to participate in the price cap coalition, and it will come into effect on December 5 for crude oil and February 5, 2023 for refined products.
The preliminary guidelines released by the United States indicate that the United States will maintain the previously imposed ban on Russian oil imports even after the implementation of the price cap on imports of maritime crude oil from the country.
“Pursuant to Executive Order 14066…, the United States has imposed an import ban on crude oil, petroleum and petroleum fuels, oils and products of their distillation originating in the Russian Federation. This ban will remain in effect. place alongside the United States’ implementation of the Maritime Services Policy and the Price Exception,” the guidelines said on Friday.
Read next: G7 nations set to agree Russian oil price cap
Russia has pledged to stop exporting its oil to countries that apply price caps.
In an advisory, the US Treasury Department said the Russian oil price cap mechanism put in place by the Group of Seven (G7) countries will offer protections to maritime service providers unknowingly involved in business.
“This record keeping and attestation process is designed to create a ‘safe harbor’ for Service Providers against liability for sanctions violations in instances where Service Providers inadvertently process the purchase of Russian oil transported by sea above price cap due to falsified records provided by those who act in bad faith and make material misrepresentations,” the notice reads.
According to US Treasury Undersecretary Wally Adeyemo, those who violate the price cap on Russian oil exports will face consequences under the national law of jurisdictions enforcing the quota.
Putin warns ‘no gas, no oil’ if prices are capped
Russian President Vladimir Putin said on September 7 that Russia would stop supplying oil and gas to countries that impose price caps.
Capping prices, as some Western countries are considering, “would be an absolutely stupid decision,” Putin told the Eastern Economic Forum in the Pacific port city of Vladivostok.
“We will not provide anything if it is against our interests, in this case economic (interests),” he said. “No gas, no oil, no coal, no fuel oil, nothing.”