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Russia Bans Oil Sales to Nations and Companies That Comply With Price Cap

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  • Moscow’s response to the Western price cap is to stop supplying crude oil and petroleum products as of Feb. 1.
Russia Bans Oil Sales to Nations and Companies That Comply With Price Cap
Russia Bans Oil Sales to Nations and Companies That Comply With Price Cap (Image: Getty Images)

Russian President Vladimir Putin issued a decree banning oil sales to countries and companies that comply with a price cap agreed upon by Western countries in response to Moscow’s invasion of Ukraine.

The presidential decree said the sales ban could be lifted in individual cases through a “special decision” by Putin.

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Russia Bans Oil Sales to Nations and Companies That Comply With Price Cap
Russia Bans Oil Sales to Nations and Companies That Comply With Price Cap (Image: Aljazeera)

The cap, which was introduced alongside an EU embargo on maritime deliveries of Russian crude oil, aims to ensure that Russia cannot circumvent the embargo by selling its oil to third countries at high prices.

It also seeks to restrict Russia’s income while ensuring that Moscow continues to supply the global market.

Russia has expressed confidence that it will find new buyers and said the cap will not affect its military campaign in Ukraine.

His presidential decree, however, appears to have had at least an immediate effect, an oil and gas analyst, Vyacheslav Mishchenko, told Al Jazeera.

“There is already an increase in crude oil prices in the market,” he said. “I think this is a direct impact of the decree.”

Source: AL JAZEERA AND NEWS AGENCIES

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