Council Decision (CFSP) 2022/2369 amending Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine

Author (Corporate)
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Series Details L 311I, Pages 8-12
Publication Date 03/12/2022
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Summary:

Decision (CFSP) 2022/2369 - adopted by the Council of the European Union on 3 December 2022 - introducing amendments to Decision 2014/512/CFSP concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine.

Further information:

Council Decision 2014/512/CFSP was adopted in July 2014 and introduced a number of sanctions in response to Russia's actions against Ukraine. In October 2022, the Council adopted Decision (CFSP) 2022/1909 which introduced an exemption from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below a pre-established price cap agreed by the Price Cap Coalition. That exemption sought to mitigate adverse consequences on energy supply to third countries and reduce price surges driven by extraordinary market conditions, while limiting Russian oil revenues.

This Council Decision sets an oil price cap for crude oil and petroleum oils and oils obtained from bituminous minerals which originate in or are exported from Russia, at $60 per barrel. The level of the cap was established in cooperation with the Price Cap Coalition and became applicable as of 5 December 2022.

The Decision sets the level at which the exemption applies, and introduces a transition period of 45 days for vessels carrying crude oil originating in Russia, purchased and loaded onto the vessel prior to 5 December 2022 and unloaded at the final port of destination prior to 19 January 2023. As the price cap may be periodically reviewed to adapt to the market situation, the Decision also sets a transition period of 90 days after every change in the price cap, to ensure coherent implementation of the price cap by all operators. The Act also introduces an emergency clause which allows the transport of oil beyond the price cap or the provision of technical assistance, brokering services or financing or financial assistance related to the transport, when these are necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters.

The Council Decision was adopted by the Council of the European Union on 3 December 2022 and published on the same day. The measures were implemented by Council Regulation (EU) 2022/2367.

Source Link Link to Main Source http://data.europa.eu/eli/dec/2022/2369/oj
Related Links
Official
EUR-LEX: OJ L311I, 03/12/2022: Council Regulation (EU) 2022/2367 amending Regulation (EU) No 833/2014 concerning restrictive measures in view of Russia’s actions destabilising the situation in Ukraine http://data.europa.eu/eli/reg/2022/2367/oj
General Secretariat of the Council: Policies: EU restrictive measures against Russia over Ukraine (since 2014) https://www.consilium.europa.eu/en/policies/sanctions/restrictive-measures-against-russia-over-ukraine/
European Commission: DG Financial Stability, Financial Services and Capital Markets Union: Sanctions adopted following Russia’s military aggression against Ukraine https://finance.ec.europa.eu/eu-and-world/sanctions-restrictive-measures/sanctions-adopted-following-russias-military-aggression-against-ukraine_en
UK Government: News, 02/12/2022: UK and allies announce price cap of $60 on Russian Oil https://www.gov.uk/government/news/uk-and-allies-announce-price-cap-of-60-on-russian-oil
German Federal Foreign Office: Press Release, 02/12/2022: Statement of the G7 and Australia on a price cap for seaborne Russian-origin crude oil https://www.auswaertiges-amt.de/en/newsroom/news/g7-australia-price-cap-seaborne-russian-origin-crude-oil/2567026
US Department of Treasury: Press Release, 02/12/2022: Limiting Kremlin Revenues and Stabilizing Global Energy Supply with a Price Cap on Russian Oil https://home.treasury.gov/news/press-releases/jy1141
Canadian Government: Department of Finance: News Release, 02/12/2022: G7 and Australia move forward with price cap on Russian oil https://www.canada.ca/en/department-finance/news/2022/12/g7-and-australia-move-forward-with-price-cap-on-russian-oil.html
Council of the European Union: Press Release, 03/12/2022: Russian oil: EU agrees on level of price cap https://www.consilium.europa.eu/en/press/press-releases/2022/12/03/russian-oil-eu-agrees-on-level-of-price-cap/
European Commission: Press Release, 03/12/2022: G7 agrees oil price cap: reducing Russia's revenues, while keeping global energy markets stable https://ec.europa.eu/commission/presscorner/detail/en/ip_22_7468
European Commission: Questions and Answers: G7 agrees oil price cap to reduce Russia's revenues, while keeping global energy markets stable (3 December 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_7469

News
TVP World, 28/11/2022: EU fails to agree on Russian oil price cap https://tvpworld.com/64783744/eu-fails-to-agree-on-russian-oil-price-cap
Euronews, 29/11/2022: EU talks to cap Russian oil prices hit impasse as key deadline nears https://www.euronews.com/my-europe/2022/11/29/eu-talks-to-cap-russian-oil-prices-hit-impasse-as-key-deadline-nears
The Guardian, 02/12/2022: EU states agree $60 a barrel cap on Russian oil after Polish green light https://www.theguardian.com/world/2022/dec/02/eu-states-agree-60-a-barrel-cap-on-russian-oil-after-polish-green-light
Reuters, 03/12/2022: Russia says it won't accept oil price cap and is preparing response https://www.reuters.com/business/energy/russia-price-cap-is-dangerous-will-not-curb-demand-our-oil-2022-12-03/
BBC News, 04/12/2022: Ukraine war: Price cap on Russian oil will hit Putin immediately - US https://www.bbc.co.uk/news/world-europe-63843893
Politico, 04/12/2022: Russia to ban oil sales under price cap, Kremlin says https://www.politico.eu/article/russia-to-ban-oil-sales-under-price-cap-kremlin-says/
The Moscow Times, 04/12/2022: Russia Denounces Oil Price Cap Agreed by EU, G7 https://www.themoscowtimes.com/2022/12/04/russia-denounces-oil-price-cap-agreed-by-eu-g7-a79583
BBC News, 05/12/2022: Ukraine war: Oil prices rise as cap on Russian crude kicks in https://www.bbc.co.uk/news/business-63855030
Reuters, 05/12/2022: G7 price cap on Russian oil kicks in, Russia will only sell at market price https://www.reuters.com/business/energy/g7-price-cap-russian-oil-kicks-russia-will-only-sell-market-price-2022-12-05/
RFI News, 05/12/2022: Russian oil price cap put to the test https://www.rfi.fr/en/business-and-tech/20221205-russian-oil-price-cap-put-to-the-test
RFE/RL, 05/12/2022: Russia Defiant As Oil Price Cap, Embargo Come Into Effect https://www.rferl.org/a/russia-defiant-oil-price-cap-embargo/32162353.html

Commentary and Analysis
S&P Global: Commodity Insights, 09/11/2022: Oil price cap, EU sanctions on Russia poised to further shake up global oil flows (Infographic) https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/110922-infographic-oil-price-cap-eu-sanctions-on-russia-poised-to-further-shake-up-global-oil-flows
Italian Institute for International Political Studies (ISPI): Commentary, 11/11/2022: Price cap: beware of Asia https://www.ispionline.it/en/pubblicazione/price-cap-beware-asia-36658
Center for Strategic & International Studies (CSIS): Critical Questions, 28/11/2022: Price Cap on Russian Oil: Running to Stand Still https://www.csis.org/analysis/price-cap-russian-oil-running-stand-still
Columbia University SIPA: Center on Global Energy Policy: Interview, 30/11/2022: How the Price Cap on Russian Oil Will Work in Practice https://www.energypolicy.columbia.edu/research/qa/how-price-cap-russian-oil-will-work-practice
Atlantic Council: Blog, 02/12/2022: What to expect from the new Russian oil price cap https://www.atlanticcouncil.org/blogs/new-atlanticist/what-to-expect-from-the-new-russian-oil-price-cap/
Associated Press (AP News): Explainer, 02/12/2022: What’s the effect of Russian oil price cap, ban? https://apnews.com/article/russia-ukraine-business-moscow-europe-european-union-825506b6a349cce7e5971c0ac550aeaa
Politico, 04/12/2022: The West’s oil war with Russia gets real https://www.politico.eu/article/west-oil-war-russia-sanctions-oil-price-cap-g7-vladimir-putin-zelensky-opec-war-ukraine/
Bloomberg: Opinion, 05/12/2022: Russian Oil Price Cap Will Please the US, and No One Else https://www.bloomberg.com/opinion/articles/2022-12-05/russian-oil-price-cap-will-please-the-us-and-no-one-else-lbarf0jk
The Spectator: Coffee House, 05/12/2022: Will the EU’s oil price cap hurt Russia? https://www.spectator.co.uk/article/will-the-eus-oil-price-cap-hurt-russia/

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