Russia bans oil exports to countries using price cap starting February

i24NEWS

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Russian President Vladimir Putin.
Alexei Druzhinin (Sputnik/AFP)Russian President Vladimir Putin.

The measure introduced in response to EU, G7, and Australia agreeing on the price ceiling of $60 per barrel will be in effect until July 1, 2023

Russia's President Vladimir Putin on Tuesday signed a decree that bans oil exports to countries that introduced a price cap starting in February.

The measure will be in effect until July 1, 2023. The move comes in response to the European Union, G7, and Australia agreeing on the price ceiling of $60 per barrel in early December. The measure was introduced alongside an EU embargo on seaborne deliveries of Russian crude oil to restrict Russia's revenue amid the ongoing invasion of Ukraine. 

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The cap aims to ensure Russia cannot bypass the embargo by selling its oil to third countries at high prices. Moscow previously warned the move will not affect the Ukraine offensive and expressed confidence it would find new buyers.

"This is a violation of the market price-setting, an infringement on market processes, any reference to a (price) cap is unacceptable," Kremlin spokesman Dmitry Peskov said last week. 

Russia was the top exporter of gas to the EU before launching its war in Ukraine in late February. Moscow has since faced a series of sanctions packages against its energy sector aiming to affect its financial abilities to fund the offensive. In response, Russia has cut its gas supplies to Europe, sparking accusations of "blackmail" and using "energy as a weapon."  

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