U.S. officials and representatives from its allied nations have agreed to convene in March to perform a review in March of the level of the Russian crude price cap. In addition, the participating nations will look to impose price caps on Russian refined fuel products.
The parties agreed to convene during discussions following a virtual meeting held by US Deputy Treasury Secretary Wally Adeyemo with other deputy ministers.
“The Deputies agreed to an approach for refined products that will institute two distinct caps, in addition to the crude cap: one cap for products that generally trade at a premium to crude, such as diesel or gasoil, and one for products that trade at a discount to crude, such as fuel oil,” the Treasury Department confirmed.
Although some members of the price-cap coalition such as Poland and Estonia looked to impose a price cap below $60 per barrel in an effort to limit Russian revenues, the U.S. remains resolute to keep the price level consistent.
Last year, Europe imported about 220 million barrels of diesel-type products from Russia last year, data from Vortexa Ltd. compiled by Bloomberg revealed. With the continent aiming to limit its reliance on Russian supplies, there has been pressure to establish a price cap before the EU imposes a ban in February.