Russia to ban oil sales to companies that comply with EU's price cap

Russia on Tuesday published a decree that bans oil sales to countries and companies that comply with Europe's price cap coordinated by ally Western countries in response to its military invasion of Ukraine.  decree will take effect from Feb. 1 until July 1. According to published document by Kremlin, Russia may ease restriction basis a "special decision" that will be me by Russian President Vlimir Putin for individual cases in accordance with specific countries.

'Will inform when it is signed': Peskov

Russia took countermeasure in response to 27-country European Union bloc, G7, and Australia's recent price cap on Russian oil of $60 per barrel. An embargo was also agreed on  seaborne deliveries of Russian crude oil. price cap was introduced to ensure that Russian Federation does not bypass EU-initiated sanctions by selling its oil to third countries in Asian markets at high prices.

Putin's spokesperson Dmitry Peskov h slammed decision warning that price cap on Russian oil will prove to be “destabilising for global energy markets''. "One thing is clear and undeniable: option of se decisions is a step towards destabilising global energy markets," Peskov h noted at state presser. EU h justified its economic maneuver saying that it is designed to restrict Russia's oil supplies from flowing into global markets and bypass  Western sanctions. It h argued that price cap would clamp down on President Putin's ability to fund his war in Ukraine.

Peskov informed on Dec 27 that Kremlin will officially announce when Putin will sign decree, according to state-run news agency Tass. "We will inform when it is signed," Peskov stated when asked at a briefing if decree was alrey signed on Tuesday and was formally in effect. Putin h previously berated price ceiling and h pledged retaliatory economic sanctions in response to "unfriendly actions of certain foreign states and international organizations."

He of Russian Federation h instructed Kremlin to determine sanctions imposed on Russian Federation, labelling such acts as "unfriendly actions which contrict international law by United States of America and foreign states and international organizations that joined m directed at illegitimately depriving Russian Federation, citizens of Russian Federation and Russian legal entities of [ir] property right and restricting ir property right.".

" supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if contracts for se supplies directly or indirectly are using a price cap," Russia's presidential decree on Tuesday re. 

Credit: Kremlin