Vladimir Putin extended special economic fuel-and-energy measures in response to price cap on Russian oil
The measures will be in force until 31 December 2023
Russian President Vladimir Putin extended special economic fuel-and-energy measures in response to price cap on Russian oil and oil products set by some foreign states to 31 December 2023, according to the publication on the official website of the Kremlin.
Vladimir Putin signed Executive Order On Amendments to Presidential Executive Order No. 961 of December 27, 2022, On Special Economic Fuel-and-energy Measures in Response to the Price Cap on Russian Oil and Oil Products Established by some Foreign States.
According to the amendment, the phrase in Executive Order No 961 of December 27, 2022 “until July 1, 2023” is replaced with “until December 31, 2023.”
This Executive Order comes into force upon its signing.
On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force. G7 nations, the EU and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. Moreover, starting February 5, 2023, similar restrictions on deliveries of petroleum products from Russia were enforced as the EU Council officially greenlighted the decision, in conjunction with the G7, to introduce a price ceiling on Russian petroleum products supplied by sea at $100 for premium oil and at $45 for discount.
Russian President Vladimir Putin, in his turn, signed an Executive Order on special economic measures in the fuel-and-energy sector in response to the price cap established on Russian oil and oil products by some foreign states. The Executive Order has established that Russia bans the sale of oil and oil products to foreign companies and individuals if the contracts on these sales include the use of this mechanism directly or indirectly. The established ban applies to all stages of sales up to and including the final buyer. Amendments introduced in April 2023 let sell oil to friendly countries at prices below the cap.
