According to analyst Amrita Sen of Energy Aspects, the European Union’s upcoming ban on Russian oil imports removes the price cap, which means that the bloc will still not buy Russian oil regardless of the price ceiling, writes Business insider.

Recall that starting December 5, the EU will ban the importation by sea of oil from Russia, and companies from these countries will not be allowed to provide insurance and delivery services for Russian oil cargoes bound for anywhere in the world. At the same time, the EU countries plan to set a price cap on Russian oil to ensure that the embargo is lifted and to keep Russian supplies flowing to the world market to prevent a price shock and limit Moscow’s export revenues.

However, in reality, it will turn out that EU countries will not be able to import Russian oil even if they adhere to the price cap, because the embargo that the EU imposes from December 5 replaces the price ceiling. Thus, the EU will still stop importing Russian oil regardless of the ceiling.

According to Sen, the market is simply confused about what the price ceiling means for supply.

As for Russia, it has warned that it will not sell oil to any country involved in the price cap and take action against the price ceiling by canceling supplies from the spot market, which would cause a price spike.

However, countries involved in the price cap can still ship oil from Russia to buyers in Asia after Dec. 5, and non-EU companies can also provide financial services for Russian oil cargoes.