Russia to ban the sale of its oil to countries that apply the price cap

A diesel production plant in the Yarakta oil field, owned by Irkutsk Oil Company (INK), in the Irkutsk region, Russia.

The European Union is preparing a sixth round of sanctions against Russia which could include the imposition of an embargo on Russian oil imports by the end of the year, two European diplomats said on May 1.


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From February 1, 2023, Russia will ban the sale of its oil to foreign countries that use the Russian black gold price cap.

Western countries, who want to limit the resources of Moscow intended to finance the war in Ukraine, are already observing an embargo on Russian oil.

The measure, decided by the Kremlin, will be applied until July 1, Vladimir Putin reserving the right to exempt certain countries.


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Decided by the European Union, the G7 countries and Australia, the

cap on the price of Russian oil

– 60 dollars per barrel – concerns black gold sold by boat to third countries.

The measure

, which entered into force on December 5, is complementary to the oil embargo of these same countries.

It aims to prevent Moscow from circumventing the sanctions by selling to others the quantities that Westerners no longer buy from it.

By prohibiting, as of February 1, 2023, selling to those who apply the minimum price, Russian President Vladimir Putin hopes to encourage buyers not to respect Western decisions, while preserving his commercial ties with countries deemed friendly.

But for now, nothing says that this measure will produce effects, because Western insurance companies now refuse to insure tankers from countries that would like to impose the floor price.

However, Western insurance companies represent 90% of maritime oil insurance.

Impossible to do without them.

Even Turkey has indicated that uninsured tankers will no longer be able to use its straits.

According to the Bloomberg agency, oil exports have already fallen by 54% in the week following the implementation of Western decisions.

► To read also: The ceiling of Russian crude oil causes a traffic jam at the mouth of the Black Sea


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