Russia to Ban Oil Sales to Nations Imposing Price Caps

By H. Haverstock, The Chicago Times

December 28, 2022

MOSCOW – The Russian government announced on Tuesday that oil sales to countries that enforce a price cap will be banned.

On December 5, oil traders were required to enforce a price cap of $60 per barrel for Russian oil in order to gain access to Western financing.  The current cap is close to recent market prices for Russian oil and is expected to hamper future revenue of the Russian oil industry, which is the world’s second largest oil exporter.  The price cap is an effort to further sanction Russia for its invasion of Ukraine.  

President Vladimir Putin issued an executive order in direct response to the Western price cap in which the Kremlin would  ban crude oil sales to countries participating in the price cap from February 1 to July 1, 2023.  Further bans on oil related products are also expected from the Russian government in the near future.