Putin prohibits selling oil to countries that accept the ceiling decreed by the West

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Putin prohibits selling oil to countries that accept the ceiling decreed by the West

Russian President < strong>Vladimir Putin, unveiled the news. Finally, the long-awaited response from his country to the oil price ceiling decreed by the West, signing a decree that prohibits exports of crude oil and its derivatives to those countries that apply said limit, during five months and from on February 1st .

The G-7, the European Union and Australia strong> agreed to impose a maximum price of $60 a barrel on Russian seaborne oil as of December 5 in retaliation for their “special military operation” in Ukraine . This figure is around the current price for which Kremlin crude is sold, but it is well below This was the unexpected price for which Russia was able to sell its oil this year and thanks to which it was able to initially offset the impact of the financial sanctions decreed against Moscow.

Second largest exporter

Russia is the second largest exporter of crude oil in the world after Saudi Arabia , and a significant drop in its sales would have larger consequences< /strong> for global supply from this power source. The decree, published on the Kremlin website and on a government website, has been presented as “a direct response” to the actions that are unfriendly and contrary to International Law carried out by the US strong>, foreign states and international organizations that have joined them”.

“Deliveries of petroleum and petroleum derivativesForeign entities are prohibited, in the event that in the contracts for these exports, directly or indirectly, they contemplate the mechanism to set the maximum price”, reads the legal text. “This established prohibition is It applies to all stages of export, up to the final consumer,” he continues. The ban on the sale of oil will come into force on February 1 , although the veto on the sale of crude oil derivatives must be applied. wait for the decision of the Russian Government and you will be able to be effective after said date.

The cap on the price of oil, a measure not seen even in the days of the Cold War , is in the offing. aimed at depleting Russian state coffers and Russian military efforts in Ukraine. Analysts have assured that the measure will have There will be a limited impact on the revenue that Moscow will have. is it? getting currently. Despite this, Finance Minister Anton Siluanov has admitted that the fiscal deficit could exceed the 2% forecast by 2023, a fiscal hurdle added for a country that is in the process. He was spending a lot of money on his military campaign in the Ukraine.

With the start of the war, Moscow began. It has redirected its crude exports towards Asia, more specifically towards China and India.