Since February 1, Russia has introduced a ban on oil exports under the price ceiling.

From February 1, 2023, the decree of the president of the aggressor country, Vladimir Putin, on “countermeasures” directed against the price ceiling for Russian oil, introduced by the “Big Seven” and the European Union in connection with the full-scale invasion of Russia into Ukraine, enters into force.

As reported by the Russian propaganda agency RIA Novosti, as a response to the price ceiling on oil, Putin banned the supply of Russian oil and oil products, if the contract directly or indirectly provides for price restrictions.

The price ceiling on oil exports has been banned since February 1. The presidential decree is limited to July 1, 2023. The ban also applies to existing contracts, if they specify a price ceiling.

The decree of the president of the aggressor country applies to any deals with Russian oil up to the final consumer, which provides for the refusal to work with traders who are going to limit the maximum price.

According to the resolution of the government of the aggressor country, if the customs authorities find out about the application of the price ceiling during the declaration of cargo, their transportation by Russian Railways and Transnafta pipelines from Russia to the countries of the Eurasian Economic Union will be prohibited.

According to the article, Moscow’s response means “the inadmissibility of non-market mechanisms of trade in Russian goods… creates the necessary legislative basis for Russian oil and gas companies not to participate in the system of maximum prices.”

The war in Ukraine and the oil situation:

At the end of May 2022, EU leaders agreed to introduce a ban on the export of Russian oil.

On December 3, 2022, the Council of the EU decided to set the ceiling price for oil exported from Russia at USD 60 per barrel.

On December 5, 2022, EU oil sanctions against Russia entered into force.

The price ceiling means that from December 5, the 27 EU countries, the UK, the US, Canada, Japan and Australia will provide services related to Russian tanker oil only if it is purchased at or below a set ceiling price. Raw materials more expensive than 60 dollars per barrel are prohibited to be transported and insured. This is only about transportation by sea, the ban does not apply to pipeline oil.

From February 5, 2023, the purchase of Russian oil products will also be prohibited.