From 1 February, Russia will totally ban the sale of oil to international locations that experience presented a worth cap on its exports.
The $60 (€56) cap was once agreed originally of December by way of the EU, the G7 team of countries and Australia.
On 27 December, Russian President Vladimir Putin signed a decree that learn, “The delivery of Russian petroleum and petroleum products to foreign legal entities and other individuals is prohibited” if the ones international locations use the ceiling worth.
The decree specifies that this measure is deliberate for a length of 5 months, “until July 1, 2023”.
Only “a special decision” by way of Vladimir Putin himself can permit the supply of Russian oil to a number of international locations that have carried out the ceiling worth in contemporary weeks, the decree signifies.
At the start of December, the 27 Member States of the European Union, the G7 international locations and Australia reached an settlement, after months of negotiations, on a cap on the cost of Russian oil for export.
In truth, handiest oil offered by way of Russia at a worth equivalent to or lower than $60 can proceed to be delivered. Beyond this ceiling, it’s prohibited for firms to offer services and products permitting its maritime delivery (freight, insurance coverage, and so on.).
The purpose of this type of measure is to deprive Moscow of vital earnings to finance its army intervention in Ukraine.
However, the cost of a barrel of Russian oil is these days fluctuating round $65, slightly greater than the fastened ceiling, indicating a restricted momentary affect of this measure, consistent with many observers.
Ukrainian President Volodymyr Zelensky had deplored “a weak position” of his Western allies on the time of its status quo.
On their facet, the Russian leaders had declared on a number of events “not to accept” this mechanism which “will have no impact” at the process the Russian offensive towards its Ukrainian neighbour.
On December 9, Vladimir Putin had threatened the West to “reduce the production” of Russian oil “if necessary”, then lambasting a “stupid decision”.
Russia is the sector’s 2nd biggest exporter of oil and was once, in 2021, the second one maximum in-demand provider to the international locations of the European Union. According to European leaders, 90 in step with cent of Russian oil exports to the EU will already be stopped by way of the tip of 2022 in protest towards the Russian offensive in Ukraine.
