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World oil prices

EU extends exemption from oil price cap for Sakhalin-2 project

The extension is granted for one year until 28 June 2026

BRUSSELS, May 20. /TASS/. The European Union (EU) has extended the exemption from the oil price for the Sakhalin-2 project in Russia for 13 months, according to a legal act by the EU Council published in the Official Journal of the EU.

"The 17th package includes an extension of the exemption from the oil price cap, allowing for the transport of crude oil originating in the Sakhalin-2 Project in Russia by vessel to Japan, based on energy security concerns. The extension is granted for one year until 28 June 2026," the document reads.

Those exemptions to the mechanism of the oil price cap have been introduced at the request by Japan, which is the main purchaser of this oil and acquires it at the market price.

The EU currently demands that consumers and transporters of Russian oil quit contracts with it at the price above $60 per barrel, calling all tankers ignoring this requirement a ‘shadow fleet’.

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