Russia’s restriction on oil shipments to countries and corporations who adhere to a Western-imposed price cap went into effect on Wednesday.
The edict, signed on December 27 by President Vladimir Putin, forbids the supply of Russian crude oil and oil products “at all stages” if contracts directly or indirectly adhere to the price cap.
In reaction to Moscow’s war on Ukraine, the G7, EU, and Australia agreed to a $60 per barrel price restriction on Russian seaborne crude oil in early December.
The restriction will be in effect for five months, with exceptions granted by the president on a case-by-case basis.
Exporting enterprises must furnish the customs administration with monthly information on finalised contracts and pricing, as well as data on monitoring the ultimate buyer’s non-use of the price cap.
If customs authorities detect the use of the price cap, energy resource shipment will be halted.