As a response to the price cap agreed upon by Western countries in light of Russia’s invasion of Ukraine, Moscow issued a decree on Tuesday banning oil sales to countries and firms who adhere with the cap.
“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” are using a price cap, the presidential decree said.
The ban will be in force from February 1 through July 1.
It further noted that in certain situations, the prohibition could be overturned due to a “special decision” made by Russian President Vladimir Putin.
The European Union, G7, and Australia agreed to a price ceiling of US$60 per barrel in early December, with the goal of limiting Russia’s revenue while ensuring Moscow continues to supply the global market.