Russia Bans Oil Export on Countries with Gas Price Cap
Russia has responded to the west’s decision to cap gas prices as a measure to brake the rising energy prices. This was an expected move as Russian President Vladimir Putin has criticized this cap numerous times.
Russian President Vladimir Putin Banned Oil Export on Countries Implementing the Gas Price Cap / Picture: © kremlin.ru
According to Reuters, Russian President Vladimir Putin today gave Russia's long-awaited response to a Western price cap, signing a decree banning the supply of oil and petroleum products to countries participating in the cap for five months from February 1.
According to ORF, it is stated that „The supply of Russian oil and Russian oil products to foreign legal entities and other private individuals is prohibited" if they apply the price cap, as it is quoted from the decree signed by Putin. The Gas Price cap was criticized by Putin on several occasions, so this decision came as no surprise.
This month, the G-7, the European Union and Australia agreed on a price cap of $60 a barrel for Russian crude oil shipped by sea. According to Vienna. at, the price cap has been in effect since December 5th. The USA, Great Britain, France, Japan, Germany and the other Western partners want to reduce Moscow's lavish income from oil sales. At the same time, it should be ensured that Moscow continues to supply the world market. The price cap was introduced in addition to an EU embargo on Russian crude oil transported by ship. It is intended to prevent Russia from circumventing the sanctions and selling the raw material to other countries at the prevailing market price.