putin banned oil export to countries that prescribed price ceiling
The President of the russian federation, vladimir putin, signed a decree prohibiting the sale of russian oil and petroleum products if the countries prescribed a price cap in the contracts.
This is stated in the decree on the portal of legal information of the russian federation.
The decree enters into force on February 1 and will be valid until July 1, 2023. With the entry into force of the decree, a ban on oil exports to countries that supported the price ceiling was introduced. As for oil products, the date should be determined by the russian government.
"Supplies to legal entities and individuals are prohibited, provided that the contracts for these supplies directly or indirectly provide for the use of the mechanism of fixing the maximum price," the decree reads.
It was previously reported that moscow might reduce oil production by 500,000 to 700,000 barrels per day in response to the G7 limiting prices for russian oil exports. Oil revenues make up the main part of the russian budget.
Reference
Four days after the G7 capped russian oil prices, some russian oil is trading far below the threshold level set for moscow.
The G7 countries announced they agreed to set a "price cap" for oil exported from the russian federation by sea at $60 per barrel.
