Russia extends response to oil price ceiling

On June 10, President Vladimir Putin signed a decree extending the ban on oil and oil product exports under price-fixed contracts set by the Group of Seven (G7) countries until December 31, 2025. The current ban is effective until June 30, 2025.

Panoramic view of the oil refinery at the Vankorskoye oil well in the Krasnoyarsk region, Russia. Photo: Reuters/TTXVN

In December 2022, the G7 countries, together with the European Union (EU) and Australia, imposed a price cap on Russian oil at $60 per barrel. The cap was later extended to oil products: $100 per barrel for diesel and $45 per barrel for fuel oil. Companies from the G7 countries were banned from providing transportation and insurance services for Russian oil and petroleum products if they were sold at prices higher than the above ceiling.

In response, President Putin banned the sale of oil and oil products under such conditional contracts from February 1, 2023. Since then, the Russian President has extended this countermeasure several times, most recently until June 30, 2025.

Meanwhile, Western countries have repeatedly discussed lowering the cap further amid falling oil prices. According to the Financial Times (UK), the European Commission wants to lower it to $45/barrel and ban the use of Russian energy infrastructure, including the Nord Stream gas pipeline, as part of a new package of anti-Russia sanctions.

Source: https://hanoimoi.vn/nga-gia-han-bien-phap-dap-tra-tran-gia-dau-705170.html