Putin extends retaliatory measures against oil price cap until mid-2024
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Russian officials have repeatedly said that almost all Russian oil is being sold above the cap.
PHOTO: REUTERS
MOSCOW – President Vladimir Putin has extended retaliatory measures against a price cap on Russian oil imposed by Western countries until the end of June 2024, according to a decree published on the government website on Dec 18.
In late January, the Russian government banned domestic oil exporters and Customs bodies from adhering to Western-imposed price caps on Russian crude.
The measure was issued to help enforce Mr Putin’s decree of Dec 27, 2022, that prohibited the supply of crude oil and oil products for five months from Feb 1, 2023, to nations that abide by the caps. It was then extended until the end of 2023.
The price cap, unseen even during the Cold War between the West and the Soviet Union, is aimed at crippling Moscow’s military efforts in Ukraine – without upsetting markets by actually blocking Russian supply.
Under the cap, oil traders who want to retain access to Western financing for crucial aspects of global shipping such as insurance must promise not to pay above US$60 (S$80) per barrel for Russian seaborne oil.
Russian officials have repeatedly said that almost all Russian oil is being sold above the cap.
Russia is the world’s second-largest oil exporter after Saudi Arabia, and any actual disruption to its sales would have far-reaching consequences for global energy supplies. REUTERS
