Page 9 - RusRPTNov22

2.0 Politics
2.1 The EU releases the eighth sanctions package
The European Union published the eighth package of sanctions on October 6 with a ceiling on Russian oil prices. Its content became known the day before, the main news is in the oil price cap execution mechanism.
The EU will ban the transportation of Russian oil by tankers to third countries simultaneously with the imposition of an embargo on Russian oil from December 5, 2022, and oil products from February 5, 2023.
As expected, the price ceiling is an exception to this rule. Transportation and its provision will be allowed if the purchase prices of oil and oil products do not exceed the established threshold. There are no threshold prices in the document - it is assumed that they will be agreed and reviewed by the Price Cap Coalition. The coalition will include the G7 countries and the EU, who want to bring in the also reluctant India and China. The action of the ceiling will begin from the moment it is agreed by the Coalition.
The restrictions will not affect pipeline deliveries and oil transit through Russia — that is, for example, the shipment of Kazakh oil by the CPC consortium by tankers through Novorossiysk. Also, Sakhalin-2 oil for Japan was removed from under them.
It follows from the document that if a ship transported Russian oil at a price in excess of the cap, it will lose access to insurance, financial support and other related services that are almost completely controlled by the EU countries. This implies an "eternal" black list of tankers tainted with too expensive Russian oil: there is no mechanism for "forgiving" the vessel in the document.
The punishment will also apply to ships flying the flags of third countries, and those registered in the Russian Maritime Register of Shipping (RMRS). The RMRS itself will also be subject to sanctions, all ships from it will be prohibited from entering EU ports. This means that the European Union intends to equate the value of the Russian registration to zero and close the loopholes in the form of changing the flag of the vessel and independent insurance.
How ships can prove the purchase price was not included in the document, but, according to Reuters, the buyer of the batch will have to provide the insurer and carrier with the appropriate certificate.
What else is in the package
It is completely prohibited to provide crypto wallets, accounting services and storage of crypto assets to residents and citizens of Russia, regardless of the amount. Exceptions are made for persons with EU citizenship or residence permit.
9 RUSSIA Country Report November 2022 www.intellinews.com