Putin bans all oil sales to ‘price cap’ states
The move is in response to a Western coalition price-limit on Russia’s seaborne oil exports
President Vladimir Putin has signed a decree on retaliatory measures to the West’s price cap on Russian oil exports. Tuesday's ratification is in response to the punitive measure taken by the EU, G7 countries, and Australia, which came into effect earlier this month.
The presidential decree bans the supply of oil and petroleum products from Russia to countries which apply a price cap in their contracts. It also prohibits deliveries if the contracts directly or indirectly specify the cap.
According to the
, which was published on the government’s website, the ban on oil supplies in response to the price cap comes into effect on February 1, 2023 and is valid until July 1, 2023. The effective date of the ban on supplying petroleum products will be determined later by the government.
The president can grant special permission for the supply of oil and oil products prohibited by the price ceiling, according to the decree. The Russian Ministry of Energy will monitor compliance with the presidential order on retaliatory measures.
The $60-per-barrel price cap on Russian seaborne oil exports was introduced by the EU, G7 countries, and Australia on December 5. It bans Western companies from providing insurance and other services for Russian oil shipments unless the cargo is purchased at or below the set price.
The Kremlin vowed to respond to the measure in a way that would best serve Moscow’s interests, warning it would not trade with nations that support the price ceiling. Deputy Prime Minister Aleksandr Novak said that Russian oil will still be in high demand despite the latest sanctions on the country’s exports. By imposing a price cap, Western countries will only trigger further energy inflation due to scarce supply, the minister said, adding that Russia views such types of non-market mechanisms as unacceptable.
No more ‘business as usual’ with EU – Moscow
The bloc has done the US’ bidding at the expense of its own interests, the Russian FM has said
Relations between Moscow and Brussels are now at their
“lowest point,” Russia’s foreign minister, Sergey Lavrov, told TASS in an interview published on Tuesday. The EU has declared a
“hybrid war” on Moscow by unquestioningly following the US, the minister added.
Brussels' policies have only hurt the interests and well-being of EU citizens themselves, Lavrov said. He also accused Washington of barring EU nations from conducting dialogue on energy with Moscow, even though Russia’s supplies of fuel provided Europe with
“unprecedented prosperity” for decades.
Following the launch of Moscow’s military operation in Ukraine, the EU began gradually reducing Russian energy imports through sanctions, which include a ban on EU imports of seaborne Russian oil, as well as a $60-per-barrel cap on Russian seaborne crude.
In late July, EU member states agreed on a plan to reduce their gas consumption by 15% over the coming months to reduce their dependence on Russian energy. These policies, coupled with the sanctions and the conflict in Ukraine, have led to an energy crunch in the EU, with gas prices climbing to record highs.
Russia will
“no longer do ‘business as usual’” with partners such as these, Lavrov warned, adding that Moscow has no intention of
“banging its head against a wall,” as it can find countries to work with beyond Europe.
Nevertheless, Moscow is prepared to cooperate with more pragmatic European leaders in the future, the foreign minister said.
“If some nationally-oriented politicians emerge [in Europe] who understand all the benefits of equal and mutually beneficial partnership with Russia, I can assure you, there will be no issues on our side,” he said.
“We are realists. We will continue to work with those few Europeans that cherish friendship with Russia. We will not cooperate with Russophobes,” Lavrov added.
