Moscow, Russia.- President Vladimir Putin signed a decree banning the supply of oil and crude oil products from February 1 for five months to nations that apply the cap on Russian crude prices, set in early December at $60 a barrel by the European Union, the G7 and Australia.
“The supply of Russian oil and oil products to foreign legal entities and other individuals is prohibited if they implement the price cap,” the decree said.
The price cap, which was not seen even in the days of the Cold War between the West and the Soviet Union, is aimed at crippling Moscow’s military efforts in Ukraine.
Finance Minister Anton Siluanov said on Tuesday that Russia’s budget deficit could be larger than the planned 2 percent of GDP in 2023, with the oil price cap reducing export earnings, an additional fiscal hurdle for Moscow. , since he spends a lot on his military campaign in Ukraine.
However, some analysts have said the cap will have little immediate impact on the oil revenue Moscow is currently earning.
