Russia has banned sales to countries and organizations that had agreed with Western countries on the price cap on fuel. Moscow announced this for five months from February next year said from News BBC.
On December 5, the G7, Australia and the European Union initiated the price cap. According to this, countries are prohibited from paying more than 60 dollars per barrel for Russian fuel oil. Russia now says that fuel and similar products will not be sold to anyone who accepts the price ceiling. Yesterday Tuesday (December 27) an order of the countries President Vladimir Putin stated that the ban will be effective for five months from February 1 to July 1, 2023. The decree also states that Putin can grant “special permission” for supplies to countries covered by sanctions.
The G7 coalition floated the idea of a price cap last September to curb Russian financing of the war in Ukraine. After the invasion of Ukraine last February, the embargo on Russian oil and demand in the Western world decreased, but the increase in prices and demand in other countries, including India and China, increased Moscow’s income. However, the Russian Finance Minister has already said that the effect of the price limit will be on the export income of next year.
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