US Department of the Treasury explained how the price ceiling for petroleum products works

The Office of Foreign Assets Control (an agency within the US Department of the Treasury) posted on its site the clarification concerning shipments from the Russian Federation (RF). According to this document, the price ceiling for energy products from Russia will be set only for several goods. The petroleum products loaded on tankers before February 5, 2023, and delivered before April 1, 2023, will be exempted from it.

The clarification notes that, subject to the above conditions, US firms will be able to transport oil products from the RF by sea. Goods should be purchased at a price exceeding the limit.

The following situation was given as an example. January 1, 2023, the US commodity trader signed a delivery contract concerning energy products from the RF. As per the contract, they should be sent to a jurisdiction permitting the import of Russian goods. On February 1, the goods were loaded onto the vessel, and on February 15, they were shipped to their place of destination. In this case, American insurance companies undertake to cover the shipment and, if necessary, provide payment for claims.