The oil price cap is set by the European Commission with 90 days’ notice, in Council Regulation (EU) No. 833/2014, Annex XXVIII.
If oil originating in or exported from Russia is purchased above the applicable oil price cap, it is prohibited to provide technical assistance, brokering services, or financial services in connection with the trade and transport of Russian oil to third countries, including through ship-to-ship transfers.
The type of oil covered by the prohibition must originate in or be exported from Russia and must be listed in Annex XXV of EU Council Regulation 833/2014.
It is permitted to provide technical assistance, etc., for the transport of Russian oil if the oil is purchased at a price below the price cap (EU Council Regulation 833/2014, Article 3n, paragraph 6(a)). However, technical assistance is prohibited as soon as the operator has knowledge of, or reasonable grounds to suspect, a sale above the price cap (EU Council Regulation 833/2014, Article 3n, paragraph 7).
If the oil has merely been in transit through Russia to third countries, the prohibition does not apply.
If technical assistance is provided to vessels transporting crude oil or petroleum products, documentation specifying price information is required (EU Council Regulation 833/2014, Article 3n, paragraph 6). The European Commission recommends retaining this documentation for 5 years. As of February 20, 2024, all links in the value chain must have access to itemized price information so that it is clear at what price per barrel the oil was sold. The price information must be shared by the parties who have access to it, such as traders and charterers. Operators further down the supply chain, such as shipowners and insurance companies, should, as part of their due diligence procedures, be able to collect and share detailed price information from operators closer to the source of that information. Competent authorities may at any time request this information from any operator, regardless of its position in the supply chain, for the purpose of verifying compliance with the oil price cap.
The European Commission also has several relevant FAQs with useful explanations, which can be found here:
Consolidated FAQ
Price Cap Coalition Advisory for the Maritime Oil Industry and Related Sectors