Much like the rules around crude oil, Russian petroleum products will have to be “substantially transformed” before reshipment to comply with the G7’s price cap, the US says.
The Treasury department’s Office of Foreign Assets Control (Ofac) has published guidance on the cap, which came into effect on Sunday.
“For Russian petroleum products, once those products are substantially transformed in a jurisdiction other than the Russian Federation, they are no longer considered to be of Russian Federation origin, and thus the price cap no longer applies,” Ofac said.
