The head of the Kremlin banned the sale of oil to countries that support the introduction of a ceiling on prices for Russian oil.
Kremlin leader Vladimir Putin signed an order on retaliatory measures to introduce a price ceiling for Russian oil. The standards of the document will be valid until July 1, 2023. At the same time, the ban on the supply of oil and oil products from the Russian Federation will come into force on February 1, 2023. The corresponding document is published on the official portal of legal information.
The President of Russia banned the supply of oil and petroleum products from the Russian Federation to countries that set price ceilings in contracts. Putin also banned the supply of oil to foreign buyers if the contract uses a price cap mechanism.
However, the supply of Russian oil and oil products to countries that introduced a price ceiling is still possible, but only on the basis of a special decision by Putin.
It should be noted that the EU member states have agreed on a price ceiling for oil from the Russian Federation. In particular, the corresponding document was published on December 4 in the official journal of the EU.
Putin tasked the Russian Ministry of Energy with implementing his order.
It was decided to set the limit at $60/bbl. with subsequent adjustment every two months starting January 2023. The indicator is planned to be maintained in this way at least 5% lower than the current export price of the Urals.
The mechanism applies only to the supply of oil by sea. At the same time, transportation through pipelines is not affected by the restriction.
A number of countries will be able to buy Russian oil at a higher price: the Czech Republic, Slovakia, Hungary, Bulgaria and Croatia.
Let’s remind, earlier Putin has declared, that as a result of the introduction of a ceiling of prices for Russian oil investment in the world will be reduced to zero, and then the prices “will suddenly rise”.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.