US Treasury: Russia Price Cap Coalition Agrees to Two Levels Based on Oil Product Type

WASHINGTON (Sputnik) - The coalition of countries imposing a price cap on Russian oil agreed to two separate price caps on oil products based on their type and price relative to crude oil, the US Treasury Department said in a statement.

On Friday, officials representing the coalition countries, including US Deputy Treasury Secretary Wally Adeyemo, met virtually to discuss the effort, the statement said.

“The Deputies agreed to an approach for refined products that will institute two distinct caps, in addition to the crude cap: one cap for products that generally trade at a premium to crude, such as diesel or gasoil, and one for products that trade at a discount to crude, such as fuel oil,” the statement said.

The multilateral coalition of countries imposing a price cap on Russian oil products agree that their efforts have been successful so far and plan to review the price level of the cap in March, the statement said.

Planning a review for March allows the coalition to take into account developments in global markets after the refined product caps are implemented, the statement said.