FACT SHEET: Limiting Kremlin Revenues and Stabilizing Global Energy Supply with a Price Cap on Russian Oil

Date issued: Dec. 05 2022

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TURBOFAC Commentary (235 words)

Notes:

1) This Fact Sheet was issued concurrently with the ($60 Price Cap) Determination Pursuant to Sections 1(a)(ii), 1(b), and 5 of Executive Order 14071 (Effective December 5, 2022) (First PC Determination).

2) For practical compliance purposes, the Fact Sheet is notable for the statement that follows:

o Russia has multiple options to respond to the price cap. Russia can sell at or below the price cap and keep its oil flowing onto global markets, at lower prices for importers and with the benefit of best-in-class G7 services. Alternatively, Russia can rely on non-G7 service providers, which are limited in scale, more expensive, and less reliable. Given these constraints, reducing the volume of sales would not be in Russia’s economic interest, especially because doing so would mean reducing sales to key emerging markets, including Russian allies.

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