The UK has banned the import of Russian oil and oil products into the UK, and has further banned UK services including finance, insurance, and shipping from enabling the seaborne transport of Russian oil and oil products globally (see here for our previous blog).
However the UK (in coordination with G7 and Australia) has also created a price cap exception to the services ban which allow the UK to continue facilitating the transport of Russian oil and product by sea to and between third countries, if sold at or under an agreed price.
OFSI announced that a General Licence, which will create the price cap, will be published before 5 December 2022. Additional general licences to ensure international alignment and the smooth operation of the Price Cap will also be published before 5 December 2022.
The UK has also created a new Unit within OFSI which will:
- lead the Government’s work on the licensing and enforcement system for the Oil Price Cap
- engage with industry to ensure readiness for the cap; and
- monitor the level and impact of the cap.