Putin prohibits the sale of Russian oil to countries that put a ceiling on the selling price

It took nearly a month for Russia’s retaliation to reach the signed agreement to limit the selling price of Russian oil in the face of soaring energy prices in the middle of winter. President Russian President Vladimir Putin Yesterday, he signed a decree with measures in response to imposing a ceiling on the price of Russian crude, including a ban on supplying these countries with Russian oil and its derivative products.

the decree “On the application of special economic measures in the fuel and energy sector in connection with the setting by some foreign countries of a maximum price for Russian oil and petroleum products” will enter into force from February 1, 2023 to July 1, 2023.

The measure provides for a ban on the supply of oil and petroleum products from Russian Federation “For those who impose a price cap in contracts,” according to the TASS agency. Similarly, the order signed yesterday also prohibits the supply of Russian oil to foreign buyers if the contract uses a price cap mechanism.

In this sense, the Ministry of Energy Russia will monitor compliance with the presidential decree on retaliatory measures against capping Russian oil prices.

Market value

In early December, EU member states, along with the Group of Seven and Australia, agreed to put a cap on $60 On the price of Russian oil transported by sea. The political agreement also ensures that if the market price falls below $60 per barrel, the ceiling will be updated to at least one. 5% below its market value.

The signed agreement also prohibits shipping companies European companies transfer Russian oil to third countries if it is sold at a price higher than the fixed price.

President of the European Commission, Ursula von der LeyenAnd she confirmed at the time that this global ceiling on Russian crude “will enhance the impact of the sanctions” on the Kremlin that the bloc has adopted since the beginning of the war, and “will further reduce Russian income.”

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