PUTIN BANS OIL SALES TO PRICE CAP NATIONS

Wed 28 December 2022:

Moscow gave its long-awaited response to the price cap on Tuesday, that bans oil sales to countries and companies that comply with a price cap agreed to by Western countries in response to Moscow’s invasion of Ukraine.

On Tuesday, Moscow responded to the price cap in a much-anticipated manner. It forbids the supply of crude oil and oil products to countries that adhere to the cap beginning on February 1 for a period of five months.

According to the presidential decree, the sales ban may be lifted in individual cases through a “special decision” made by Putin.

This month, the Group of Seven (G7) industrialised nations, the European Union, and Australia agreed to a $60-per-barrel price cap on Russian seaborne crude oil, which will take effect on December 5.

The cap, which was introduced alongside an EU embargo on seaborne deliveries of Russian crude oil, aims to ensure Russia cannot bypass the embargo by selling its oil to third countries at high prices.

It also seeks to restrict Russia’s revenue while making sure Moscow keeps supplying the global market.

Russia has expressed confidence it would find new buyers and said the cap will not affect its military campaign in Ukraine.

Its presidential decree, however, appears to have had at least one immediate effect, an oil and gas analyst, Vyacheslav Mishchenko, told Al Jazeera.

“There is already a hike on crude oil prices in the market,” he said. “I think this is a direct impact of the decree.”

Russia is the second-largest oil exporter in the world after Saudi Arabia, and a big decline in its output would have significant effects on the world’s energy supplies.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

___________________________________________________________________________________________________________________________________

FOLLOW INDEPENDENT PRESS:

TWITTER (CLICK HERE)
https://twitter.com/IpIndependent