Russia Bans Oil Exports to Countries Responsible for Price Cap

Russia has responded to the western price cap on its crude oil exports, with Vladimir Putin signing a decree prohibiting the export of crude oil and petroleum products to the countries responsible for imposing the cap.

According to the decree published on Tuesday, the ban will come into force on February 1st, lasting for an initial five months.
The decision does not come as a shock, with such a move from Moscow expected in light of the decision by the G7, the European Union, and Australia, agreeing to a $60 per barrel ban on Russian seaborne crude oil at the beginning of December.

The decree stated the measures were a direct response to “actions that are unfriendly and contradictory to international law by the United States and foreign states and international organisations joining them”

“Deliveries of Russian oil and oil products to foreign entities and individuals are banned, on the condition that in the contracts for these supplies, the use of a maximum price fixing mechanism is directly or indirectly envisaged,” 

The embargo on crude oil exports will begin on February 1st, but the date for the ban on other oil products is yet to be set and may be later.