Russia prohibits domestic oil exporters from complying with price limits imposed by the West


The Russian government on Monday prevented domestic oil exporters and customs authorities from complying with the price limits imposed by the West on its crude oil.

The measure was issued to help implement President Vladimir Putin’s December 27 decree banning the supply of crude oil and its derivatives from February 1, for a period of five months, to countries that adhere to the price cap.

The new Russian decision prohibits companies and individuals from including oil price limits mechanisms in their contracts.

They must also inform customs officials and the Department of Energy of any attempts to impose a price cap.

In addition, customs authorities are required to prevent shipments from leaving Russia if they find that such mechanisms have been implemented.

Starting from the fifth of February, the West intends to impose two limits on the prices of Russian oil products, one on products traded at a premium to crude oil prices such as diesel or gas oil, and the other on products traded at a discount to crude oil prices such as fuel oil.

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