Russia’s long-awaited answer to a Western price limit was delivered on Tuesday by President Vladimir Putin, who signed an order restricting the supply of oil and oil products to countries that are a part of the cap beginning on February 1 for a period of five months. With effect from December 5, the Group of Seven major nations, the European Union, and Australia agreed to a $60 per barrel price restriction on Russian seaborne crude oil in response to Moscow’s “special military operation” in Ukraine.
The Kremlin’s decree stated: “This…comes into force on Feb. 1, 2023, and applies until July 1, 2023.”
Exports of crude oil will be banned starting on February 1; however, the Russian government will choose when oil products will also be prohibited, which may be after February 1. Putin may choose to override the restriction in certain circumstances, according to a provision in the directive.
(With inputs from agencies)
