President Vladimir Putin has banned the sale of oil to countries imposing a price cap on Russia.
The TelegraphFollowView ProfilePutin bans sale of Russian oil to the WestSam Meadows - 1h ago5918
President Vladimir Putin has banned the sale of oil to countries imposing a price cap on Russia. The West had placed a price cap on Russian seaborne crude oil - Staff/Reuters© Staff/ReutersThe G7, the European Union and Australia agreed earlier this month to a cap on the price to be paid for Russian seaborne crude oil of $60 (£50), effective from December 5, in a bid to put financial pressure on the Kremlin.The cap seeks to restrict Russia's revenue while making sure Moscow keeps supplying the global market.Mr Putin signed a decree on Tuesday delivering Moscow’s long-awaited response to the cap, with the policy due to come into force on February 1 and last for five months until July.The decree read: "The supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if the contracts for these supplies directly or indirectly [use the price cap]."
The G7, the European Union and Australia agreed earlier this month to a cap on the price to be paid for Russian seaborne crude oil of $60 (£50), effective from December 5, in a bid to put financial pressure on the Kremlin.
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The cap seeks to restrict Russia's revenue while making sure Moscow keeps supplying the global market.
Mr Putin signed a decree on Tuesday delivering Moscow’s long-awaited response to the cap, with the policy due to come into force on February 1 and last for five months until July.
The decree read: "The supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if the contracts for these supplies directly or indirectly [use the price cap]."
It added that the ban may be lifted in individual cases on the basis of a "special decision" by Mr Putin.
Introduced alongside an EU embargo on seaborne deliveries of Russian crude oil, the cap aims to ensure Russia cannot bypass the embargo by selling its oil to third countries at high prices.
Russia has said the cap will not affect its military campaign in Ukraine and expressed confidence it would find new buyers.
The Russian economy has struggled amid Western sanctions and the price cap, with the rouble falling by around 3% against the US dollar on Tuesday.