The G7 and European Union price cap mechanism targets Russia’s maritime fossil fuel revenues. It operates through maritime services rather than outright trade bans.The Core Mechanism: Western shipping companies, maritime insurers, and protection and indemnity (P&I) clubs are legally barred from servicing vessels carrying Russian oil worldwide.These services are allowed only if the Russian crude oil is purchased at or below $60 per barrel.Separate thresholds apply to refined petroleum products. High-value products (like diesel) are capped at $100 per barrel, while low-value products (like fuel oil) are capped at $45 per http://barrel.Global buyers must provide a multi-tier paper trail of invoices and receipts. This proves to Western insurers and shipping registries that the cargo was bought below the price cap.
Note by Alessandro Bazzoni