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In response to Moscow’s offensive in Ukraine, Russia issued a decree Tuesday prohibiting oil sales to countries and companies that adhere to a price cap agreed upon by Western countries.
“The supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if the contracts for these supplies directly or indirectly” are using a price cap, the presidential decree said.
From February 1 to July 1, the decree will be in effect.
It went on to say that the ban could be lifted in individual cases based on a “special decision” from Russian President Vladimir Putin.
The European Union, G7, and Australia agreed to a price ceiling of $60 per barrel in early December, with the goal of limiting Russia’s revenue while ensuring Moscow continues to supply the global market.
The cap, which was implemented alongside an EU embargo on seaborne deliveries of Russian crude oil, aims to ensure that Russia cannot avoid the embargo by selling its oil at high prices to third countries.
Russia has stated that the cap will not affect its military campaign in Ukraine and that it is confident it will find new buyers.