New Lower Price Cap on Russian Crude Takes Effect

By
Mfame Editor
-
13

  • The UK and EU have reduced the price cap for Russian crude to US$47.60 per barrel, while the US maintains its cap at US$60 per barrel.
  • Refined product price caps remain unchanged at US$100 (premium products) and US$45 (discount products).
  • Members must obtain and submit attestations confirming compliance within 30 days of loading to maintain cover.

Members are reminded that under both the UK and EU sanctions regimes, the new price cap for Russian crude has been set at US$47.60 per barrel. Although the United States has opted to retain its higher cap of US$60 per barrel, as the Club is an EU entity also subject to UK provisions, cover will only apply to voyages where the crude purchase price is at or below US$47.60.

Refined Product Caps

There have been no changes to the refined product price caps, which remain aligned across the US, UK, and EU. These stand at US$100 per barrel for products typically trading at a premium to crude, and US$45 per barrel for those trading at a discount.

Transitional Arrangements

Wind-down periods are in place for contracts that were entered into under the prior US$60 per barrel crude cap. These timelines are detailed in the Club’s Notice to Members. The UK has also issued additional guidance in the form of FAQs (questions 154–161).

Attestation Requirements

If Russian crude markets move down to the revised cap and trades become viable, Members must secure an attestation confirming that the purchase price was US$47.60 or below for each voyage. This attestation must be submitted to the Club within 30 days of loading. Failure to comply may jeopardise cover for that voyage.

Reporting Obligations

Members are further reminded of the requirement to provide details of all Russian voyages to the Club in line with the UK’s Spire reporting system. In addition, they must ensure they retain the contractual right to demand “ancillary information” from their counterparties, should the Club request it.

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Source: West of England P&I