Russia bans sale of its oil to countries that set price ceilings

Ban starts from February 1
Russia bans sale of its oil to countries that set price ceilings
Russia oil ban

Russia announced a ban on the sale of its oil to countries and companies that adhere to a price ceiling agreed to by Western nations, which led to a slight rise in crude prices for a brief period.

As of the first of February 2023, Russia is scheduled to ban the sale of its oil to foreign countries that adopted a ceiling of sixty dollars per barrel in early December thanks to a decision by the European Union, the Group of Seven, and Australia.

A decree signed by Russian President Vladimir Putin on Tuesday said it would “prohibit the delivery of Russian oil and petroleum products to foreign legal entities and other individuals” if they adopt a price cap.

This decree will be effective from the first of February to the first of July.

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The decree said the ban could be lifted in some individual cases based on a “special decision” by Russian President Vladimir Putin.

Oil prices jumped after the announcement, with analysts pointing to expectations of an increase in demand due to China’s cancellation of Covid-related lockdown measures.

But the rise in prices did not last long and faded at the end of the trading sessions. Analysts said Moscow’s move would not hinder deliveries to India, China, and other importers who have not joined the approved price cap.

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