On Friday, September 5, Norway made a decision to lower the price ceiling on Russian oil within the framework of sanctions against the Russian Federation, agreed with the European Union. An official statement was published on the website of the Norwegian Ministry of Foreign Affairs.
According to this decision, Norway joined the European Union countries in lowering the price ceiling from 60 to 47.6 dollars per barrel.
“Oil exports still account for about a third of the Russian government’s revenues. Reducing revenues and increasing pressure on the Russian economy makes it harder for the Russian authorities to wage an illegal war in Ukraine.”
– Espen Barth Eide, Minister of Foreign Affairs of Norway
Key details of the decision and its implications
Now Norwegian companies will not be able to import oil and oil products at prices that exceed the established limit for Norway, the EU and third countries.
A ban has also been introduced on providing technical assistance, brokerage services, financing or financial support related to the trade of crude oil or oil products from Russia to third countries.
For reference: on July 18, the EU approved the 18th package of sanctions against the Russian Federation, lowering the price cap to 47.6 dollars per barrel and introducing an automatic and dynamic mechanism for future discounts. The limit is to be 15% below the average Urals price for the previous reporting period. On September 3, the new limit came into effect. The United Kingdom and Canada also supported the reduction.
With these steps, the EU and its allies have intensified economic pressure on Russia and demonstrated the strength of unity within the sanctions package.