Putin bans supply of oil, petroleum products under price cap

It is noted that the Russian president could grant a special permission for the supply of oil and petroleum products that are otherwise prohibited by this decree.

Russian President Vladimir Putin banned the supply of Russian oil and petroleum products if contracts directly or indirectly provide for a price cap imposed by some states, according to a decree published on Tuesday. "The supply of Russian oil and petroleum products to foreign legal entities and individuals is prohibited, provided that the contracts for these supplies directly or indirectly contain use of a mechanism for capping the marginal price. The ban is applied at all supply stages to the final buyer," the decree said as quoted by the Russian news agency Sputnik.

It is noted that the Russian president could grant a special permission for the supply of oil and petroleum products that are otherwise prohibited by this decree. "Supplies of Russian oil and petroleum products, which is prohibited in accordance with this decree, may be carried out based on a special decision of the Russian president," the document said.

According to Sputnik, the ban on the supply of Russian oil under the price cap will go into effect on February 1, 2023, and will be valid until July 1, 2023. The date for the ban on the supply of Russian petroleum products will be determined by the Cabinet, but will be no sooner than February 1, 2023, when the current decree goes into effect. (ANI)