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Putin bans all oil sales to ‘price cap’ states – RT Business News

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The move follows a Western coalition price limit on Russia’s maritime oil exports

President Vladimir Putin has signed a decree on retaliatory measures to the West’s price cap on Russian oil exports. Tuesday’s ratification follows the punitive measure taken by the EU, G7 countries and Australia, which took effect earlier this month.

The presidential decree prohibits the supply of petroleum and petroleum products from Russia to countries that apply price caps in their contracts. It also prohibits deliveries if the contracts directly or indirectly specify the ceiling.

According to the decree, which was published on the government’s website, the oil supply ban in response to the price cap comes into effect on February 1, 2023 and is valid until July 1, 2023. The date of entry into force of the oil supply ban products will be determined later by the government.

The president can grant special permission for the supply of petroleum and petroleum products prohibited by the price cap, according to the decree. The Russian Energy Ministry will monitor compliance with the Presidential Order on Retaliation.

READ MORE:
Western sanctions won’t stop demand for Russian oil – Moscow

The price cap of $60 a barrel on Russian maritime oil exports was introduced by the EU, G7 countries and Australia on December 5. It prohibits Western companies from providing insurance and other services for Russian oil shipments unless the cargo is purchased at or below. the fixed price.

The Kremlin pledged to respond to the measure in a way that would best serve Moscow’s interests, warning that it would not trade with countries that support the price cap. Deputy Prime Minister Aleksandr Novak said Russian oil would still be in high demand despite the country’s latest export sanctions. By imposing a price cap, Western countries will only trigger further energy inflation due to the scarcity of supply, the minister said, adding that Russia views these types of non-market mechanisms as unacceptable.

For more stories on economics and finance, visit RT’s business section

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