Moscow — Russian President Vladimir Putin has extended retaliatory measures against a price cap on its oil imposed by Western countries until the end of 2024, according to a decree published on the government’s website on Thursday.
The decree had previously been enacted until June 30, 2024.
The Russian government has banned domestic oil exporters and customs bodies from adhering to Western-imposed price caps on Russian crude.
The measure was issued to help enforce Putin’s decree of Dec. 27, 2022 that prohibited the supply of crude oil and oil to nations that abide by the caps.
The price cap, which wasn’t tried even at the height of the Cold War between the West and the Soviet Union, is aimed at crippling Moscow’s military efforts in Ukraine – without upsetting markets by actually blocking Russian supply.
Under the cap, oil traders who want to retain access to Western financing for vital aspects of global shipping such as insurance must promise not to pay above $60 per barrel for Russian seaborne oil.
Reporting by Vladimir Soldatkin Editing by Mark Potter – Reuters
