Russian President Vladimir Putin signed an order on Tuesday limiting the sale of crude oil and oil products to nations that are a part of the Western price cap starting on 1 February for a term of five months. This was Russia’s long-awaited response to a Western pricing restriction.
In reaction to Moscow’s ‘special military operation’ in Ukraine, the Group of Seven major countries, the European Union, and Australia decided to impose a $60 per barrel price cap on Russian crude oil that will take effect on December 5.
‘This…comes into force on February 1, 2023, and applies until July 1, 2023,’ the Kremlin’s decree said.
Exports of crude oil will be banned starting on February 1; however, the Russian government will choose when oil products will also be prohibited, which may be after February 1.
Putin may choose to override the restriction in certain circumstances, according to a provision in the directive.
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