Putin bans oil exports to countries with price cap

MOSCOW: Russian President Vladimir Putin (pix) has issued a decree banning oil exports from February to countries that have adopted a price cap on the commodity.

Supplies of Russian oil and oil products to foreign companies and individuals are banned if the contracts “directly or indirectly incorporate the mechanism for fixing a price cap”, the document published on Tuesday said, reported German Press Agency (dpa).

An EU regulation – supported by the Group of Seven (G7) leading economies – has been in place since the beginning of December to force Russia to sell oil for a maximum of US$60 per barrel (159 litres) to buyers in other states. The cap will be up to US$9.50 below the most recent market price for Russian crude oil.

Crude oil from Russia may now only be imported into the EU in exceptional cases.-Bernama