The Cabinet of Ministers of the Russian Federation explained the implementation of the decree on the response to the introduction of a price limit for Russian oil

The Government of the Russian Federation has formulated a procedure for the implementation of response measures in connection with the limitation of prices for Russian oil. Corresponding document signed by Prime Minister Mikhail Mishustin was published on Monday, January 30.

Thus, in accordance with the resolution, the Ministry of Energy, together with the Ministry of Finance, must approve the procedure for controlling prices for export oil by March 1 this year. In turn, supplier companies must notify the energy department of the concluded contracts and prices, as well as provide data on monitoring the non-use of the price fixing mechanism to the end buyer.

Earlier in the day, the International Monetary Fund (IMF) issued a forecast that Russian crude oil exports would not be affected by the fuel price cap, while large parts of the European Union (EU) were facing recession.

On January 26, it became known that the EU is considering the possibility of limiting prices for diesel fuel and fuel oil from the Russian Federation. It is assumed that the ceiling can be set at $100 per barrel for diesel and $45 for fuel oil. At the same time, some countries advocated more serious limits.

On January 23, the newspaper Kommersant, citing sources, reported that the government would instruct Russian oil companies to ensure that in the event of further resale of energy carriers, a price ceiling was not applied to them.

On December 27, Russian President Vladimir Putin signed a decree on retaliatory measures, according to which the supply of oil and oil products to foreign legal entities and individuals is prohibited, provided that their contracts directly or indirectly provide for the use of a price cap mechanism.

Since December 5, there has been an embargo on Russian oil supplied by sea. The EU countries have set an adjustable ceiling for energy prices at $60 per barrel. It is expected that from February 5, European restrictions on oil products from the Russian Federation imported by sea will come into force.