Fast News
President Vladimir Putin’s decree is seen as a retaliatory mechanism towards international locations that abide by the West’s determination to impose a $60 per barrel value ceiling on Russian oil.
(Reuters Archive)
Russia has issued a decree to ban oil gross sales to international locations and firms that adjust to a value cap agreed upon by Western international locations in response to Moscow’s offensive in Ukraine.
“The supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if the contracts for these supplies directly or indirectly” are utilizing a value cap, the presidential decree stated Tuesday.
The decree will take impact from February 1 till July 1 of 2023.
It added that the ban could also be lifted in particular person instances on the idea of a “special decision” from Russian President Vladimir Putin.
The value ceiling of $60 per barrel agreed by the European Union, G7 and Australia got here into drive in early December and seeks to limit Russia’s income whereas ensuring Moscow retains supplying the worldwide market.
Introduced alongside an EU embargo on seaborne deliveries of Russian crude oil, the cap goals to make sure Russia can’t bypass the embargo by promoting its oil to 3rd international locations at excessive costs.
Russia has stated the cap won’t have an effect on its navy marketing campaign in Ukraine and expressed confidence it could discover new patrons.
Russia ranks second to Saudi Arabia because the world’s largest producer of crude oil amongst OPEC+ international locations.
According to the International Energy Agency, as of October, Russia produces greater than 9.7 million barrels per day of crude oil.
As of November 2021, Slovakia and Hungary had been the highest two international locations in Europe which are a part of the Organisation for Economic Co-operation and Development (OECD), which import their oil from Russia.
READ MORE:
Europe hoarding Russian diesel forward of February 2023 ban
Source: TRTWorld and companies
