(1)

On 31 July 2014, the Council adopted Decision 2014/512/CFSP (1).

(2)

The Union remains unwavering in its support for Ukraine’s sovereignty and territorial integrity.

(3)

On 6 October 2022, the Council adopted Decision (CFSP) 2022/1909 (2), which introduced an exemption from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries of crude oil or petroleum products which originate in or are exported from Russia, purchased at or below a pre-established price cap agreed by the Price Cap Coalition. That exemption is intended to mitigate adverse consequences on energy supply to third countries and reduce price surges driven by extraordinary market conditions, while limiting Russian oil revenues.

(4)

In view of the situation, and taking into account the discussions within the Price Cap Coalition, the effectiveness of the measure in terms of its expected results, international adherence to and informal alignment with the price cap mechanism, and its potential impact on the Union and its Member States, it is appropriate to introduce the price cap for crude oil, that is the price per barrel at or below which crude oil from Russia is exempt from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries.

(5)

It is also appropriate to introduce further measures. In particular, it is appropriate to clarify the existing prohibition on the trading and brokering of Russian crude oil and petroleum products and extend the price cap exemption when such goods are traded at or below the price cap.

(6)

It is also appropriate to extend the transition period applicable to the transport of crude oil and certain petroleum products after every subsequent change in the price cap for a period of 90 days to the provision, directly or indirectly, of technical assistance, brokering services or financing or financial assistance, related to the transport, subject to the same conditions. This measure is necessary to ensure consistent implementation of the price cap by all operators.

(7)

It is also appropriate to introduce a transitional period of 45 days for vessels carrying crude oil originating in Russia, which was purchased and loaded onto the vessel prior to 5 December 2022 and unloaded at the final port of destination prior to 19 January 2023.

(8)

Moreover, it is appropriate to clarify that the prohibition to provide services related to the transport of Russian crude oil or petroleum products by a third country flagged vessel applies in relation to vessels which in the past transported such goods purchased above the price cap, provided the operator responsible for that transport knew or had reasonable cause to suspect that this was the case. This is necessary in order to ensure legal certainty.

(9)

It is appropriate to introduce an exemption from the prohibition to provide maritime transport and the prohibition to provide technical assistance, brokering services or financing or financial assistance, related to the maritime transport to third countries, where necessary for the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or the environment, or as a response to natural disasters.

(10)

Finally, it is appropriate to introduce a regular review of the price cap mechanism to take into account the effectiveness of the measure in terms of its expected results, its implementation, international adherence to and informal alignment with the price cap mechanism, and its potential impact on the Union and its Member States, and to respond to developments in the market, including possible turbulences. Such review needs to take into account the objectives of the price cap, including its ability to reduce Russia’s oil revenues, as well as the principle that the price cap should be at least 5% below the average market price for Russian oil and petroleum products. The average market price should be calculated in cooperation with the International Energy Agency. Any considerations that would potentially affect the functioning and terms of the price cap would be raised within the Price Cap Coalition, following discussion in the Council. In order to evaluate market developments in a timely manner, such review should be conducted as of mid-January 2023 and the Council should return to the issue every 2 months thereafter.

(11)

Taking into account the current circumstances, which are challenging the competitiveness of EU shipping, as well as the fact that the shipping industry is a slowly recovering sector of the economy, the Commission intends to urgently adopt appropriate supportive measures, including by further developing existing instruments at the latest by 5 February 2023, aiming at preserving the credibility and strategic importance of the Union’s shipping industry, maintaining and further enhancing the competitiveness of EU shipping, while protecting the interest of the competitive operation of ships which are flying the flags of Member States, as well as encouraging the re-flagging of ships to Member States’ ship registers.

(12)

Further action by the Union is needed in order to implement certain measures.

(13)

Decision 2014/512/CFSP should therefore be amended accordingly,

(1)

Article 4p is amended as follows:

(2)

Annex XI is amended as set out in the Annex to this Decision.