Using the country’s insurance, brokerage, and shipping services, the UK government is set to cap the price of Russian oil for any country wanting to purchase it.
In a statement released on 10 November, the UK Treasury stated the country will prohibit the provision of the services from 5 December, which is part of a broader international effort to undermine Russia’s war effort in Ukraine. The ban won’t apply to oil purchased at or below a price cap set by a coalition of the G-7 nations and Australia.
The UK’s move comes as the US and EU continue to finalize plans for the cap, which is designed to decrease revenues to Russia.
The Treasury also said that the exemption for transporting Russian oil at levels under the price cap is to “allow countries to continue to secure affordable oil.”