The ban decreed by the President of Russia, Vladimir Putin, on exporting oil to countries that comply with the ceiling price for Russian crude promoted by the G-7 countries, the EU and Australia as a sanction for the war in Ukraine has entered into force this Wednesday. It will be active at least until July 1. In turn, as of February 5, the EU countries will apply a veto by which they will not be able to buy derivatives such as diesel.
With this decision by Moscow, Russian crude oil exporters must reject contracts with foreign legal or natural persons that contain a mechanism that directly or indirectly sets a maximum price at any of the stages of supplies to the final buyer.
A similar veto, without a defined date, will also apply to exports of crude oil derivatives, such as diesel. However, various analysts have pointed out that these bans will not have any impact, because Russian oil is trading at prices below the ceiling. “The maximum price of products is set at levels high enough to allow Russian exports to continue to flow,” JP Morgan analysts say.
The Group of Seven most developed countries (G-7), the EU and Australia agreed last December to impose a price cap of $60 a barrel on Russian oil to reduce Moscow’s revenues and its “ability to wage war in Ukraine.” “, as the President of the European Commission, Ursula von der Leyen, declared at the time.
The price ceiling will also apply to derivatives from the next 5th, although the parameters of the measure have not yet been specified. According to Bloomberg, the EU is contemplating a plan to cap the maximum price of $100 a barrel.
