Russia: Vladimir Putin bans the sale of oil to countries that cap the price.

Russian President Vladimir Putin has signed a decree on countermeasures to the Western imposition of a price cap on Russian oil. The decree prohibits supplies to buyers who adhere to the price cap mechanism.

“Deliveries of Russian oil and oil products are prohibited to foreign legal entities and individuals at the prices set by the price cap mechanism. The established ban applies to all stages of deliveries up to the final buyer,” the decree states.

The ban on the delivery of oil established by this decree will apply directly from 1 February, while the ban on the delivery of Russian oil products will apply from the date determined by the Russian government, but not before the date of entry into force of this decree. Russian President Vladimir Putin has reserved the right to make exceptions on the deliveries of oil and oil products, banned by this decree, under a separate clause. The Ministry of Energy has been tasked with regularly monitoring the implementation of the ban.

An embargo on Russian oil deliveries by sea to the EU came into force on 5 December. The EU countries also decided to set a ceiling price of $60 per barrel for Russian oil delivered by sea.

President Putin had already warned the EU about the cap in a statement. “Such actions go against the principles of trade relations and will most likely lead to serious consequences for the global energy market.

The likely cap on Russian oil is part of the Western sanctions against Russia. According to analysts in the field, capping the price of Russian black gold will limit its financial resources and drastically reduce its capacities in the war it is waging against Ukraine.

Miss OLY