Russia will ban the supply of crude oil and oil products to the countries that will implement a price cap. Credit: D Thory from Pixabay.

Understand the impact of the Ukraine conflict from a cross-sector perspective with the Global Data Executive Briefing: Ukraine Conflict

Russia has decided to impose a ban on the sale of crude oil and oil products to countries that comply with price cap imposed by US-led western alliance.

Related Company Profiles

View all

A decree has been signed by Russian President Vladimir Putin to prohibit the supply of crude oil and oil products from 1 February next year for five months, reported Reuters.

The group of seven major nations, the European Union (EU) and Australia have implemented a $60-per-barrel price cap on Russian seaborne crude oil from 5th December.

This decision has been taken to increase pressure on Russia as a result of its military action against Ukraine.

The price cap is near Russian oil’s current price, but it is below the windfall price expected by the country to sell this year.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Published on a government portal and the Kremlin website, the decree is a direct response to “actions that are unfriendly and contradictory to international law by the US and foreign states and international organisations joining them.”

As per the news agency, the decree stated: “Deliveries of Russian oil and oil products to foreign entities and individuals are banned, on the condition that in the contracts for these supplies, the use of a maximum price fixing mechanism is directly or indirectly envisaged.”

The G7 price cap is expected to allow non-EU countries to continue to procure seaborne Russian crude oil, but it will restrict shipping, insurance and re-insurance firms from handling cargoes of Russian crude across the world.