Norway follows EU in lowering Russian oil price cap
Norwegian Foreign Minister Espen Barth Eide (photo: Getty Images)
Norway has decided to lower the price cap on Russian oil as part of sanctions against Russia, coordinated with the European Union, the press service of the Norwegian Ministry of Foreign Affairs reported.
With its decision, Norway joined the EU countries that lowered the price cap on Russian oil from 60 to 47.6 dollars per barrel.
"Oil exports still account for one-third of the Russian government's revenues. Reducing revenues and increasing pressure on the Russian economy makes it more difficult for the Russian authorities to wage the illegal war in Ukraine,"said Norwegian Foreign Minister Espen Barth Eide.
It is noted that Norwegian companies will no longer be able to import and purchase oil and petroleum products at a price higher than the one set for Norway, the EU, and third countries.
It is also prohibited to provide technical assistance, brokerage services, financing, or financial aid related to trade, brokerage, or transportation to third countries of crude oil or petroleum products originating in or exported from Russia.
EU lowered the price cap on Russian oil
On July 18, the EU adopted the 18th package of sanctions against Russia, according to which the maximum price for Russian oil was reduced from 60 to 47.6 dollars per barrel. The decision entered into force on September 3.
In addition, an automatic and dynamic mechanism was introduced for setting the future price limit. As reported, the cap should be 15% below the average market price of Urals crude oil for the previous reporting period.
In addition, Canada also reduced the price cap on Russian oil — by 12%.
