Russia bans oil supplies to countries that introduced price caps, says Kremlin’s

Russia has announced to ban oil supplies to countries that have introduced price caps on Russian oil and petroleum products in response to Moscow’s operation in Ukraine.

According to the Kremlin’s website, President Vladimir Putin has signed a decree, saying the supply of Russian oil and oil products to foreign legal entities and individuals is prohibited if the contracts for these supplies directly or indirectly are using a price cap. The decree will be in effect for five months from 1st February until 1st July next year.

The decree also said President Putin could give special permission to supply to countries that fall under the ban.

The price cap which was agreed upon by the G7 group of nations, Australia, and the EU came into force on 5th of this month, prohibiting countries from paying more than 60 US Dollars per barrel of Russian oil.

Russia is the world’s second-largest oil exporter after Saudi Arabia.