From February 5, 2023, the purchase of Russian oil products will be prohibited.

On Sunday, February 5, 2023, two months after the European Union banned most crude oil from Russia, the bloc will extend the embargo to Russian diesel and gasoline supplies.

According to The New York Times, the European Union, G7 countries and their allies will seek to limit the amount of revenue Russia can earn from its refined products by setting a price ceiling, similar to what they did in December for Russian oil.

Western shippers and insurers will be allowed to deal only with those Russian oil products that are sold at set prices that have not yet been announced.

There is no shortage of diesel and other petroleum products expected in Europe when the embargo begins; reserves provide at least a short-term buffer.

According to the article, in December, Russia earned about $12.6 billion from oil, which is about 24 percent less than a year earlier. In the same month, Russia’s revenues from gas exports fell by about a quarter, to $10 billion. Both Europe and Russia are paying dearly for this energy war.

The situation with oil:

At the end of May 2022, EU leaders agreed to introduce a ban on the export of Russian oil.

On December 3, 2022, the Council of the EU decided to set the ceiling price for oil exported from Russia at USD 60 per barrel.

On December 5, 2022, EU oil sanctions against Russia entered into force.

The price ceiling means that from December 5, the 27 EU countries, the UK, the US, Canada, Japan and Australia will provide services related to Russian tanker oil only if it is purchased at or below a set ceiling price. Raw materials more expensive than 60 dollars per barrel are prohibited to be transported and insured. This is only about transportation by sea, the ban does not apply to pipeline oil.

From February 5, 2023, the purchase of Russian oil products will also be prohibited.

On February 1, 2023, Putin’s decree banning oil exports under the price ceiling entered into force.