February 2, 2023

OFSI updates information on oil price cap

The UK Office of Financial Sanctions Implementation has published a blog post to update readers on implementation of the ban on the import of Russian oil and oil products, and the price cap imposed on the provision of UK financial, insurance and shipping services to facilitate the transport of Russian crude oil anywhere.

The price cap on crude oil took effect on 5 December 2022.  Beginning 5 February, 2023, the price cap will apply to refined oil products as well as crude oil.  A General License will be issued to implement the ban, allowing the UK services sector to continue to transport affordable oil to third countries, and providing for a wind-down period to exempt refined oil produces loaded onto vessels before the morning of 5 February.  At the same time, the UK will work with other Western partners to categorize the specific products targeted by the cap.  Once the price cap is in effect, industry players will have to comply with the relevant portion of a three-tier attestation model, as well as the recordkeeping and reporting licenses detailed in the applicable general licenses.

OFSI blog