Further to OFAC’s initial press release on September 9, 2022, the United States has now implemented a price cap policy with respect to the sale and purchase of Russian Federation crude oil. The price cap policy has been implemented in concert with the G7 (Canada, France, Germany, Italy, Japan, UK & US), the EU and Australia. The initial price cap has been set at $60 per barrel, effective as of December 5, 2022, but will be subject to periodic review by the Department of Treasury, presumably in consultation with the G7, EU and Australia. OFAC has provided for a grace period whereby crude oil of Russian Federation origin that is loaded onto a vessel at the port of loading prior to 12:01 AM eastern standard time (EST), December 5, 2022, and unloaded at the port of destination prior to 12:01 AM EST, January 19, 2023, is not subject to the price cap policy.
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