Hungary exempt from price cap on Russian oil – FM

Hungary has been granted an exemption from the price cap on Russian oil set by the EU and the Group of Seven (G7) countries, Hungarian Foreign Minister Peter Szijjarto announced on Saturday.

“During the negotiations on the oil price cap, we fought hard for Hungarian interests, and in the end we succeeded: Hungary was exempted from the oil price cap. Once again, we have succeeded in protecting the security of our country’s energy supply,” Szijjarto wrote on his official Facebook page.

He also criticized the initiative, saying it is “high time” Brussels realized that measures such as this “hurt the European economy the most.” He added that instead of settings price caps, the number of energy sources should be increased, which would eventually bring down global prices.

The G7, EU, and Australia have agreed to put a ceiling on the price of Russian seaborne crude at $60 per barrel, scheduled to take effect on December 5 or soon thereafter, according to a joint statement released on Saturday.

The cap will ban Western companies from insuring or financing vessels that carry Russian oil, unless the cargo is purchased at or below the cap level. Ships violating the price cap agreement will be penalized with the withdrawal of insurance and financing for 90 days. The cap will be reviewed every two months. A similar measure targeting Russian exports of petroleum products is expected to be introduced in February.

Moscow reiterated on Saturday that it will not recognize the price cap. Kremlin spokesman Dmitry Peskov said the government is currently analyzing the situation. Russia is also scheduled to discuss the cap with members of OPEC later on Sunday.

For more stories on economy & finance visit RT's business section