Russia bans oil exporters from adhering to Western price caps
The Russian government on Monday banned domestic oil exporters and customs bodies from adhering to Western-imposed price caps on Russian crude.
The measure was issued to help enforce President Vladimir Putin’s decree of December 27 that prohibited the supply of crude oil and oil products from Feb. 1, for five months, to nations that abide by the caps.
The G7 economies, the European Union and Australia agreed on December 5 to ban the use of Western-supplied maritime insurance, finance and brokering for seaborne Russian oil priced above $60 per barrel as part of Western sanctions on Moscow over its actions in Ukraine.
The new Russian act bans corporates and individuals from including oil price cap mechanisms in their contracts.
