Crude oil tankers anchor near the Russian port of Nakhodka in early December.
Image: Reuters
Russian President Putin has banned the sale of oil to countries that have imposed a price cap on the commodity. The EU, the G-7 countries and Australia agreed on such a price cap at the beginning of December.
From February 1, Russia will ban the sale of oil to countries that have imposed an oil price cap in response to the Russian offensive in Ukraine. Deliveries of Russian oil and oil products to foreign companies and individuals are prohibited if the contracts “directly or indirectly contain the mechanism for fixing a price ceiling,” according to a decree signed by President Vladimir Putin on Tuesday. The export ban should last at least five Months up to July 1 apply.
The EU, the seven leading western industrialized countries (G7) and Australia this month imposed a price cap of $60 a barrel on seaborne oil from Russia, which also targets Russian exports to third countries.
Germany and its partners want to reduce Moscow’s lavish income from oil sales. At the same time, it should be ensured that Moscow continues to supply the world market.
The price cap was introduced in addition to an EU embargo on Russian crude oil transported by ship. It is intended to prevent Russia from circumventing the sanctions and selling the raw material to other countries at the prevailing market price.
