Putin banned the sale of oil to countries that imposed a price ceiling on it

Oleg Panfilovych

Russian President Vladimir Putin signed a decree prohibiting the sale of oil to countries that have set a price ceiling for it.

RBC writes about it.

The decree prohibits the supply of oil to companies and individuals if the relevant contracts "directly or indirectly provide for the use of a ceiling price fixing mechanism." The ban takes effect on February 1, 2023. The decree also provides for a ban on the supply of oil products, but the relevant date must be determined by the government.

However, there may be exceptions to the ban — this requires a special presidential decision.

  • The agreement on limiting the price of Russian oil transported by sea to the countries of the European Union, Australia, and the countries of the "Great Seven" came into effect on December 5. These countries, with some exceptions, have agreed to buy and transport oil from Russia only if its price does not exceed $60 per barrel. In the West, the introduction of this measure is explained by the fact that it will reduce revenues to the Russian budget and make it difficult for the Russian Federation to finance the war.