Russia to Ban Oil Exports Tonations with Price Cap from Feb.

27th Dec 2022

myonlineprep

International

Russia issued a decree on Tuesday to ban oil sales to countries and companies that comply with a price cap agreed upon by Western countries in response to Moscow’s offensive in Ukraine. “The supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if the contracts for these supplies directly or indirectly” use a price cap.
It will be in effect from February 1 until July 1. It added that the ban may be lifted in individual cases on the basis of a “special decision” from President Vladimir Putin.
The price ceiling of $60 per barrel agreed by the European Union, G7 and Australia came into force in early December and sought to restrict Russia’s revenue while making sure Moscow keeps supplying the global market.
Introduced alongside an EU embargo on seaborne deliveries of Russian crude oil, the cap aims to ensure Russia cannot bypass the blockade by selling its oil to third countries at high prices.