Russia extends a ban on exporting crude oil to countries that limit Russian oil prices until December, redirecting supplies to China and India with preferential prices.
Russian President Vladimir Putin has extended until December 31 the ban on exporting crude oil to countries that impose a cap on Russian oil prices. This measure, reflected in a decree published on the legal information portal of the Russian State, began on February 1, 2023 and has been extended on several occasions, the last one until June 30.
The decree prevents the supply of Russian oil and hydrocarbons if the contracts include direct or indirect restrictions on the prices of Russian crude oil, imposed by the G7 countries, the European Union (EU) and Australia due to the war in Ukraine.
In December 2022, the EU banned the purchase of Russian oil supplied by sea, and the G7, Australia and the Twenty-Seven established a limit of $60 per barrel for Russian crude, a measure that was later extended to hydrocarbons.
Putin criticized these restrictions, calling them “colonial atavism” and ensuring that Russia will not lose money. He argued that those imposing these measures are accustomed to “stealing,” but warned that artificially capping prices could “destroy” the international energy market. Reducing investments in the sector could reduce supplies, raising prices, thus harming the promoters of these restrictions.
In response, Russia has redirected its oil and hydrocarbon exports to countries like China and India, offering them preferential prices.
