President of Russia’s bans Vladimir Putin issued a proclamation regarding oil exports, on Tuesday. “Countries that follow the price cap model are prohibit from importing any oil products starting on February 1 and will remain so until July 1, 2023”, He Said.
Germany, whose exports are largely dependent on Russia, didn’t paid attention to the oil ban regulation. A spokeswoman for the economy ministry responded to criticism. That Germany was ignorant of the oil crisis by noting that they were preparing for it starting this summer.
As of December 5. The G7 nations— France, Canada, Japan, Germany, Italy, the United States and the United Kingdom, —as well as the EU and Australia—decided to maintain the $60 per barrel price restriction on Russia’s seaborne crude oil.
Saudi Arabia is the world’s largest oil exporter, Russia in 2nd place. Now, an official ban like this, particularly to oil products, will only exacerbate tensions between the countries.
Putin further stated that “Any price cap on oil & oil product supplies, either directly or indirectly, to other countries or persons is simply prohibited. This order is kept till the final consumer. India and China have the upper main in this circumstance because they are the primary purchasers of Russian oil.”
The ban for now solely applies to crude oil Exports. The deadline for the restriction of other oil products will be reveale very shortly. Considering the big picture.
A prohibition on oil exports will only make matters worse for Russia. Because the majority of the profits are moving to that Moscow’s war.
If prompt action is not take at this time, Russia’s economy may also suffer. As long because they have a setup for shipping, insurance, and financing, the non-EU nations are not subject to sanctions or are not prohibit from buying oil from Russia.
As of Tuesday, the price of Russian Urals oil traded above $56 a barrel, which is below the limit.