"Once Russian petroleum products or Russian oil are substantially transformed (e.g., subjected to any of the refining processes listed below) 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," the Treasury said.
The Treasury also said it does not consider blending operations, like gasoline or crude blending to be substantial transformation for the purposes of the crude oil determination.
"OFAC would not consider petroleum products to be of Russian Federation origin solely because they contain a de minimis amount of Russian petroleum products left over from a container or tank," it added. "For purposes of assessing whether petroleum products are of Russian Federation origin, U.S. persons may reasonably rely upon a certificate of origin but should exercise caution if they have reason to believe such certificate has been falsified or is otherwise erroneous."
Earlier in the day, the US Treasury Department published preliminary guidance on implementing its price cap policy for Russian petroleum products.
“This document provides preliminary guidance on the implementation of the price cap policy for petroleum products of Russian Federation origin (“Russian petroleum products”),” the guidance stated.
The Treasury’s Office of Foreign Assets Control (OFAC) expects to publish its final, combined guidance for both Russian oil and Russian petroleum products before February 5, 2023, the Treasury said.
“To implement the price cap policy for Russian petroleum products, the Secretary of the Treasury intends to issue, in consultation with the Secretary of State, a determination (the 'petroleum products determination') pursuant to Executive Order 14071, as it did to implement the price cap policy for Russian oil (the 'crude oil determination'),” the document said.
“This document provides preliminary guidance on the implementation of the price cap policy for petroleum products of Russian Federation origin (“Russian petroleum products”),” the guidance stated.
The Treasury’s Office of Foreign Assets Control (OFAC) expects to publish its final, combined guidance for both Russian oil and Russian petroleum products before February 5, 2023, the Treasury said.
“To implement the price cap policy for Russian petroleum products, the Secretary of the Treasury intends to issue, in consultation with the Secretary of State, a determination (the 'petroleum products determination') pursuant to Executive Order 14071, as it did to implement the price cap policy for Russian oil (the 'crude oil determination'),” the document said.