Russia’s retaliatory measures against oil price cap to begin on February 1

Russian President Vladimir Putin’s decree on retaliatory measures to the Russian oil price cap from the G7 and the EU comes into force on February 1, Report informs referring to Russian media.

Exporters will be required to control compliance with this document up to the final buyer of their oil.

The overall duration of the presidential decree is limited to July 1, 2023.

However, there is an exception: the supply of oil and oil products, prohibited by the price ceiling, can be carried out in accordance with a special permission of the Russian president.

Later, the government issued a decree in which it explained the rules for implementing the presidential decree. Thus, by March 1, the Ministry of Energy, together with the Ministry of Finance, will have to approve the procedure for monitoring the price of Russian oil supplied for export. It also stipulates the obligations of legal entities and individuals involved in the export of raw materials, as well as customs authorities involved in the declaration of goods.

The next package of EU sanctions against Russia that covered the oil sector came into force on December 5.

The EU has stopped accepting Russian oil transported by sea. In addition, the G7 countries, Australia and the EU have introduced a cap on oil prices from Russia at $60 per barrel.

As expected, similar measures will also come into effect for oil products from February 5. The maximum price in this case is not yet known.