The order effective from February 1, 2023 bans the sale of oil to buyers supporting the price limit mechanism
Russian President Vladimir Putin has signed an Executive Order on special economic measures in the fuel-and-energy sector in response to the price cap established on Russian oil and oil products by some foreign states, according to the official website of the Kremlin.
The Executive Order has established that Russia bans the sale of oil and oil products to foreign companies and individuals if the contracts on these sales include the use of this mechanism directly or indirectly. The established ban applies to all stages of sales up to and including the final buyer.
Russian oil and oil product sales, that are banned by the Executive Order, may be carried out under a special decision of the President of the Russian Federation.
The ban on sales of Russian oil products, as established by the current Executive Order, is to be applied on the date determined by the Government of the Russian Federation but no earlier than the date of its entry into force.
This Executive Order enters into force on February 1, 2023 and will be valid until July 1, 2023.
On 2 December 2022, G7 countries and Australia imposed a price cap for Russian crude oil from 5 December 2022. The ban covers maritime transportation services for crude above the $60 per barrel.