Russia bans oil exporters from adhering to Western price caps

Rate this post

The Russian government on Monday barred domestic oil exporters and customs agencies from adhering to Western-imposed price caps on Russian crude.

The measure was issued to help enforce President Vladimir Putin’s December 27 decree banning the supply of crude oil and petroleum products from February 1, for five months, to nations that comply with the limits. .

The G7 economies, the European Union and Australia agreed on December 5 to ban the use of Western-supplied marine insurance, finance and brokerage for Russian seaborne oil priced above $60 a barrel as part of Western sanctions. against Moscow for its actions in Ukraine.

The new Russian law prohibits companies and individuals from including oil price cap mechanisms in their contracts.

They must also inform customs officials and the Ministry of Energy of any attempt to impose caps on oil prices.

In addition, customs agencies must prevent goods from leaving Russia if they discover that such mechanisms have been applied.

The Western allies plan starting February 5 to set two limits on Russian oil products, one for products that trade at a premium over crude, such as diesel or diesel, and another for products that trade at a premium. discount on crude oil, like fuel. Petroleum.

The Russian government law also calls for the Energy Ministry, with the approval of the Finance Ministry, to develop an approach to monitoring the prices of Russian oil exports by March 1.

Leave a Comment