The President of Russia, Vladimir Putinhas signed a decree on Tuesday in which it prohibits from February 1, 2023 export oil to those countries that apply a ceiling to the prices of Russian crude.
The measure, which responds to cap of $60 per barrel imposed on Russian crude by the European Union, the G7 and Australia due to the Russian military campaign in Ukraine, will apply until July 1.
In the case of petroleum products, the date on which the ban will be introduced will be decided by the Russian government, although it will never be before next February. The decree specifies that Russia will not comply with oil supplies destined for natural or legal persons in cases of contracts that include “directly or indirectly” mechanisms for setting price limits.
“The ban will apply during all phases of supply to the final buyer,” he stresses. The measures are adopted “due to unfriendly actions that contradict international law” taken by the US, foreign countries and other organizations, the document says.
He adds that the purpose of the decree is to safeguard Russia’s national interests. At the same time, he specifies that the Russian president reserves the possibility of introducing exceptions through a “special decision”.
Last week Putin described the price cap as “a colonial atavism“, although he denied that Russia will lose money for it. “They are used to stealing. But the world has changed and they are unlikely to do so today,” she said.
In addition, he warned that artificially limiting prices can “destroy” the international energy market, since a reduction in investment in the sector can reduce supplies, which would cause prices to skyrocket, with which precisely those who want to introduce such mechanisms would pay.
Previously, Russia warned that it could cut oil extraction by 5-6% early next year. “We are ready to partially reduce extractions. At the beginning of next year our reduction may be between 500,000 and 700,000 barrels per day,” Russian Deputy Prime Minister Alexandr Novak told public television.
Source: Lasexta
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