Putin orders not to sell oil and petroleum products to oil cappers

Russia has taken responsive measures to the move of the Western countries to cap prices on Russian oil.

President Putin signed the relevant decree on December 27 in the evening. The decree will come into force on February 1, 2023 and will be valid through July 1, 2023. The document was published on the official website of legal information.

According to the decree, Russia will not supply oil and petroleum products to foreign buyers if their contracts include a maximum price of fuel.

• Russia's ban on the sale of its oil and petroleum products will be effected from the moment when the decree comes into force;
• as for petroleum products, the ban will come into force on a date set by the government.

However, in a number of cases, fuel supplies will still be allowed. Vladimir Putin will make special decisions to make this possible.

Putin instructed Russia's Ministry of Energy to monitor the execution of the decree.

A $60 per barrel price cap for offshore supplies of Russian oil came into effect on December 5. Initially, the decision was supported by the G7, the European Union and Australia supported the move. Norway and the United States joined the sanctions afterwards.

Russia has repeatedly announced its intention to take measures in response to such a move.

According to the Kommersant, oil exports from Russia have dropped by more than ten percent in monthly terms since the implementation of the price cap embargo. According to Bloomberg, Russia's exports have declined by 54 percent.