Russian oil and oil product production will stop if prices are capped.
Tuesday saw the signing of a decree by Russian President Vladimir Putin that instituted defenses against a price cap put on Russian oil by Western nations.
Moscow, Russia | BAZZUP | Tuesday saw the signing of a decree by Russian President Vladimir Putin that instituted defenses against a price cap put on Russian oil by Western nations.
The regulation states that if a price cap is directly or indirectly included in the contracts, the supply of Russian oil and petroleum products to foreign legal entities and people is prohibited.
For the supply of oil and petroleum products that are otherwise forbidden by the decree, the Russian president may provide a special license.
The agreement will go into effect on February 1 and be in effect until July 1 of 2023. The Russian government will decide when petroleum products will be banned, but no earlier than February 1st. The ban on oil will go into effect on February 1st.
On December 5, the European Union, the Group of Seven countries, and Australia implemented a restriction on the price of Russian seaborne crude oil at 60 dollars per barrel. If the fuel sells for more than the cap, insurance, financing, and other services for Russian oil shipments will be prohibited.
