RF Government has approved the procedure for the implementation of the Presidential 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”. The newly signed document has been published on the official portal for legal information.
By March 1, 2023, the Ministry of Energy of the Russian Federation was instructed to approve, in agreement with the Ministry of Finance of the Russian Federation, the procedure for monitoring prices for Russian oil supplied for export.
It is foreseen that the customs will not release the goods if they are found to have been sold using the price cap. “If the customs authorities identify cases of using the cap price mechanism during the customs declaration of goods, measures are taken to ban the export of goods under such contracts until the day the conditions under which such a decision was made are eliminated, as well as a decision to refuse to release the goods,” it says.Information about the refusal to release goods and the prohibition of the export of goods is sent to Russian Railways and Transneft for taking measures aimed at preventing the export of such goods.
The order comes into effect on 1 February 2023 and covers goods exported from the Russian Federation from February 1.
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.
Russian President Vladimir Putin earlier 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. 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. The order is effective from February 1, 2023.
RF Government’s Order is available in Russian on our website >>>>