US, allies agree on $100 and $45 as maximum price levels for Russian petroleum products

The Price Cap Coalition has agreed to set two price levels for seaborne Russian petroleum products, the G7 and Australia said in a joint statement released by the US Treasury on Friday.

"The maximum price for premium-to-crude products will be 100 US dollars per barrel and the maximum price for discount-to-crude products will be 45 US dollars per barrel," the statement reads. The coalition, which is composed of Australia, Canada, the European Union, France, Germany, Italy, Japan, the United Kingdom, and the United States, considered "the market price dynamics including pricing of these products relative to crude oil," when making the decision.

According to the US and its allies, the price caps on petroleum products will be implemented across those countries on February 5 "or very soon thereafter."

 Western economies agreed new price caps on Friday on Russia’s exports of oil products that US Treasury Secretary Janet Yellen said would build on the crude oil cap set in December and further limit Russian oil revenues while keeping global energy markets supplied.