Norway has decided to lower the price cap on Russian oil to $47.6 per barrel. This is part of the strengthening of sanctions against Russia, as reported by the country’s Ministry of Foreign Affairs. The move was made in coordination with the European Union, although Norway is not a member of it.
This is reported by Finway
Sanctions Impact Russia’s Oil and Gas Sector
According to the ministry, oil exports remain a key source of revenue for the Russian Federation’s budget, accounting for one-third of government income. The reduction in the price cap aims to cut Russia’s profits, increase economic pressure, and complicate financing for the war against Ukraine.
“Oil exports still account for one-third of the Russian government’s income. Decreased revenues and increased pressure on the Russian economy make it more difficult for the Russian authorities to conduct their illegal war in Ukraine. It is important for Norway, along with our allies, to take measures that can contribute to this,” said Norwegian Foreign Minister Espen Barth Eide in a statement.
Restrictions on Russian Oil and Oil Products
The import, purchase, and transfer of Russian oil and oil products to Norway, EU countries, and third countries are prohibited. Providing technical assistance, brokerage services, financing, or other financial support related to the transportation or trade of Russian oil to third countries is also banned. Exceptions are made in cases where oil or oil products are purchased at a price not exceeding the established price cap. From now on, this cap for crude oil is set at $47.6 per barrel, down from the previous $60.
It is worth noting that in July, the European Union approved the 18th package of sanctions against Russia. According to diplomatic sources, this package also includes a reduction of the price cap on Russian oil, agreed upon by the G7 countries, to $47.6 per barrel.