It was on Wednesday that the ban on deliveries of Russian crude to countries that use the oil price cap came into force in Russia.
Under this measure, introduced under a presidential decree signed at the end of December, the delivery of Russian oil and oil products to foreign legal and natural persons is prohibited “if the delivery contracts directly or indirectly provide for the use of ‘a pricing mechanism’.
The ban on the sale of Russian crude at ceiling prices is valid from February 1 to July 1, while the date of entry into force of similar measures on petroleum products is expected to be determined by the Russian government.
The decree contains a clause under which only a “special decision” of the President of the Russian Federation will allow the delivery of Russian oil or oil products to a country or countries that have implemented the price cap.
The document also names the Russian Ministry of Energy as the party responsible for monitoring the implementation of the ban.
The Russian authorities have on several occasions signified their rejection of the cap on Russian oil prices, adopted by the European Union (EU), the G7 countries and Australia.
Entering into force on December 5, the Russian oil price cap aims to restrict Russia’s revenues while ensuring that it continues to supply the world market.
The mechanism provides that only oil sold at a price equal to or lower than 60 dollars per barrel can continue to be delivered, and that beyond that, it will be prohibited for companies based in the countries of the EU, G7 and in Australia to provide the services enabling the maritime transport of crude oil.
From Sunday February 5, it will be officially forbidden for countries of the European Union to import refined petroleum products from Russia (diesel, gasoline, fuel oil, kerosene, etc.). As part of the program of sanctions imposed on Russia in connection with Ukraine, this new ban comes after that of coal at the beginning of August 2022 and that of crude oil on December 5.