On Tuesday, Russian President Vladimir Putin signed a decree banning the supply of oil and petroleum products to countries that have capped Russian crude prices, on the condition that it enters into force on February 1, 2023 and will last for five months through July 1.
The decree stated that it will “ban the delivery of Russian oil and petroleum products to foreign legal entities and other individuals,” if they adopt a price ceiling.
And the Russian agency Sputnik reported that the decree prohibits the delivery of petroleum products if the contract provides for a maximum price imposed by some countries.
The G7 countries, Australia and the 27 European Union countries have started to cap the price of Russian seaborne crude oil at $60 a barrel, starting December 5, 2022, which is the latest Western measure for punish Moscow for its invasion of Ukraine.
The deal allows Russian oil to be shipped to other countries Using carriers from G7 countries and EU member statesinsurers and lenders, if the shipment was purchased up to the specified limit at the price of a barrel or less.
