Moscow announced the extension of the ban on the sale of Russian oil and its derivatives, within the price ceiling previously imposed by the Group of 7 and European Union countries, in December (2022).
The decision issued by President Vladimir Putin, today, Monday, June 26 (2023), extends a decree that took effect on February 1, prohibiting the sale of crude oil and oil derivatives coming from Moscow, which are subject to the Western price ceiling, according to what was published by the Russian news agency TASS.
It is scheduled that the ban on the sale of Russian oil and its derivatives will continue until next December 31, as the ban date was supposed to expire according to the first decree on July 1 (2023), according to what was seen by the specialized energy platform.
Russian oil embargo
Russia announced the extension of reciprocal punitive measures after the European Union and the Group of 7 imposed a price ceiling on Russian oil prices and its derivatives, according to a decree issued by President Vladimir Putin, and published by the government’s official legal information portal.
The text of the document, which was seen by the specialized energy platform, stated that the ban on the sale of Russian oil and its derivatives will continue, if the contracts stipulate that these supplies – directly or indirectly – are subject to the maximum prices imposed by Western countries.
At the same time, Russian Deputy Prime Minister Alexander Novak sent a message of reassurance regarding the continuation of the work of the production and mining sectors in the fuel and energy complex, according to pre-established plans, and that it was not affected by any disturbances or technical problems, explaining that there were no accidents in the regions of Rostov, Lipetsk or Tula. .
Novak – whose country has witnessed political and military turmoil over the past days – added that there were 4 technological crises that hit the energy sector, causing power outages for 1,800 people, but the authorities were able to quickly restore control.
The Russian government was able to strengthen anti-terrorism measures to protect fuel facilities, in addition to securing important information infrastructure for the energy industry, according to statements reported by the Russian news agency “Tass”.
Banning the sale of Russian oil and its derivatives in 2023
On February 1, 2023, Moscow began banning the sale of Russian oil and its derivatives to foreign countries that have adopted the price ceiling set by the G-7 countries and the European Union, at $60 per barrel of crude oil.
President Vladimir Putin signed a decree on December 27, 2022, in which he said that he would prohibit the delivery of Russian oil and oil derivatives to foreign legal entities and other individuals, in the event that they adopt the price ceiling set by Western countries.
The presidential decree stipulated special measures related to the ceiling of oil prices, as it prohibited the supply of any external party, whether states or entities, with any supplies of Russian oil and its derivatives, if the price ceiling was specified in the contracts, according to information seen by the specialized energy platform.
At the same time, the decree granted President Putin the right to give special authorization for the supply of oil and petroleum products prohibited under the price cap, but only in specific circumstances, according to the discretion of the government that determines the public interest.
It is noteworthy that the European Union, the countries of the Group of Seven industrialized countries and Australia had reached an agreement on the ceiling of Russian oil prices, which entered into force on December 5, at $ 60 a barrel, before they met again to agree on the ceiling of oil derivatives prices, which began On the 5th of last February.
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