Published on: 27.12.2022 – 23:02
From February 1, 2023, Russia will ban the sale of its oil to countries using Russia’s black gold price cap. Western countries that want to limit Moscow’s resources to finance the war in Ukraine are already eyeing an embargo on Russian oil. The measure decided by the Kremlin is valid until July 1, with Vladimir Putin reserving the right to exempt certain countries.
Adopted by the European Union, the G7 countries and Australia Russian oil price cap – $60 per barrel – refers to black gold sold by ship to third countries. The measurewhich came into force on December 5 complements the oil embargo of these countries.
It aims to prevent Moscow from circumventing sanctions by selling to others the quantities that Westerners no longer buy from it. By banning sales to those applying the floor price from February 1, 2023, Russian President Vladimir Putin hopes to encourage buyers to disrespect Western decisions while maintaining trade ties with countries considered friendly.
But for the time being there is nothing to suggest that this measure will have an effect, because western insurance companies are now refusing to insure tankers from countries that want to enforce the minimum price. However, western insurance companies account for 90% of marine oil insurance. It doesn’t work without her. Even Turkey has indicated that uninsured tankers will no longer be able to use its straits.
According to data from the Bloomberg agency, oil exports have already fallen by 54% in the week after Western decisions were implemented.
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