DIESEL PRICE

EU cap to limit Moscow’s choice of buyers

REUTERS, London

A proposed EU price cap on Russian diesel may be high enough to allow Moscow to continue exporting the fuel, but in practice could deter big Asian buyers who have become used to buying cheap Russian crude to refine it themselves, analysts say.

The European Commission is proposing that the EU set a $100/bbl price cap on Russian diesel and a $45/bbl per barrel cap on discounted products like fuel oil, EU officials said.

The February 5 price caps and EU ban on Russian oil product imports are part of several measures the West is using to slash Russia’s export revenues, limiting Moscow’s ability to fund its war in Ukraine which it waged nearly a year ago.