Russia will stop oil deliveries. This is the answer to the price limit. Putin signed the decree, the date has been changed

Since December 5, Western countries have banned insurance companies from insuring shipments of Russian oil if it was bought for more than $60 a barrel. Western brokers have a practical monopoly in marine insurance, and without them, most ports will not allow such a tanker to enter.

Price limit for oil from Russia. Vladimir Putin responds to sanctions

The decree signed on Tuesday by President Vladimir Putin stipulates that the country will stop the supply of oil and petroleum products to countries that apply the quota on February 1, 2023. This solution was introduced by the European Union, G7 countries and Australia.

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However, the decree signed by Putin has not translated into reality, as the price of Russian oil with the trade name Urals has remained significantly below its level since the cap was introduced. Since the beginning of December, Europe has not accepted tankers with Russian oil.

Russia sells oil in Asian markets to circumvent the price cap. However, the volume of sales by sea fell by up to half

The price cap has significantly reduced the price of Russian oil – since its introduction, its price has remained around $ 50 per barrel. In the Russian budget, in which revenues from taxes and export duties on oil and petroleum products already account for nearly half of the total revenue, it is stipulated that the price of the raw material will remain at USD 70 for this and next year.

In addition, the Russians use large discounts to sell oil to new markets – mainly Asian, which would replace Western markets. This is not fully successful, because according to official data and analyzes of independent experts, the sales volume in the case of deliveries by sea fell by as much as half in December compared to the previous month. The Russians themselves predict that oil production will decrease by 7 percent from January.