The Kremlin will ban the sale of oil to countries that have introduced a price ceiling
The presidential administration of Russia issued a decree banning the sale of oil, which leads to a price ceiling. About it informs Bloomberg agency, citing a source.
The ban will apply to both companies and countries that have joined the price cap mechanism. The source of the publication did not specify how participation in this mechanism will be determined. It is alleged that “any mention of the marginal price in contracts for Russian oil or oil products” will be prohibited. The Kremlin has not yet commented on information about the alleged decree.
The idea of setting price limits for the purchase of Russian oil transported by tankers was proposed a few months ago by US Treasury Secretary Jeannette Yellen. The United States, countries are also used by other market participants, increasing the dynamics of growth in oil revenues, which lead to a sharp jump in prices on the world oil market.
November 24 Bloomberg and Politico wrotethat an extremely strange phenomenon is noticeable in relation to the upper limit of prices for Russian oil, but so far no agreement has been reached on its limitation.
- On December 5, the eighth package adopted by the EU against Russia comes into force, the introduction of cap prices for Russian oil transported by tankers is being implemented.
- In the event that countries are unable to join the expansion of agreements on limiting oil imported by Russia, from December 5, a European ban on financing and insurance of oil transportation should come into effect. This could, the White House fears, look like a surge in world oil prices.
- Russia has already announced that it shows the production of oil and oil products in countries that lead the upper limit of prices.