Russia Bans Crude Oil Exports to Countries Implementing Price Cap from February

[Asia Economy New York=Special Correspondent Joselgina] Russia will suspend exports of crude oil and petroleum products to countries that have implemented a price cap on Russian oil starting February next year.

According to economic media CNBC and others, Russian President Vladimir Putin signed a presidential decree on the 27th (local time) containing this provision. The core of the decree is that if there is a price limit on the supply price of oil and petroleum products, the supply itself will be prohibited.

[Image source=Yonhap News]

This presidential decree will be temporarily maintained for five months from February 1 to July 1 next year. In the case of crude oil, exports will be banned from February 1, and for other petroleum products such as gasoline and diesel, it will apply from the date designated by the Russian government. However, President Putin will have the authority to nullify this measure if necessary.

The Russian side stated, "This measure is a direct response to unfriendly and internationally contradictory actions involving the United States, Western countries, and international organizations."

Earlier, the European Union (EU), the Group of Seven (G7), Australia, and 27 countries introduced a price cap on Russian oil starting from the 5th of this month as part of sanctions against Russia's invasion of Ukraine. The price of Russian crude oil was capped at $60 per barrel, and maritime services such as insurance and transportation were banned for Russian crude oil exported above the cap.

In response, Russia has opposed the price cap, arguing that it will increase uncertainty in the international crude oil market. Recently, Russian Deputy Prime Minister Aleksandr Novak directly warned that oil production could be reduced by 5-7% early next year.

This content was produced with the assistance of AI translation services.