Russia will ban as of February 1, 2023 the sale of their oil to countries that apply the price cap of Russian crude, set at the beginning of December at 60 dollars a barrel by the European Union, the G7 and Australia.
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The measure, which responds to the cap of 60 dollars per barrel imposed on Russian crude by the European Union, the G7 and Australia due to the Russian military campaign in Ukraine, it will apply until July 1.
“The supply of Russian oil and oil products to foreign legal entities and other individuals is prohibited” if they implement the price cap, includes a decree signed Tuesday by Russian President Vladimir Putin.
The supply of Russian oil and oil products to foreign legal entities and other individuals is prohibited
The decree specifies that Russia will not comply with oil supplies destined for natural or legal persons in cases of contracts that include “directly or indirectly” mechanisms for setting price limits.
“The prohibition will apply during all phases of the supply until the final buyer,” he stresses. The measures are taken “due to actions that are unfriendly and inconsistent with international law” taken by the US, foreign countries and other organizations, the document said.
Putin participated in the VII Eastern Economic Forum in Vladivostok.
They are used to stealing. But the world has changed and they will hardly make it
He adds that the purpose of the decree is to safeguard Russia’s national interests. At the same time, he specifies that the Russian president reserves the possibility of introducing exceptions through a “special decision”. Putin last week called the price cap “a colonial atavism”, although he denied that Russia would lose money from it.
“They are used to stealing. But the world has changed and it will be difficult for them to do it today,” he said. In addition, he warned that artificially limiting prices can “destroy” the international energy market, since a reduction in investment in the sector can reduce supplies, which would cause prices to skyrocket, with which precisely those who want to pay introduce such mechanisms.
Previously, Russia warned that it could cut oil extraction by 5-6 percent early next year. “We are ready to partially reduce extractions. At the beginning of next year our reduction may be between 500,000 and 700,000 barrels per day,” Russian Deputy Prime Minister Alexandr Novak told public television.
SANTIAGO PINZON GIRALDO
*With information from EFE and AFP.
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