Putin extended the decree on retaliatory measures to the oil price ceiling

Price ceiling for RussianWestern countries introduced oil and oil products in the winter. In December, Putin banned deliveries if the contracts include a price limit. This rule will remain in effect until the end of the year.

President Vladimir Putin amended his December Decree on retaliatory measures to impose a price ceiling on Russian oil and petroleum products, extending it until December 31 this year, inclusive. The relevant document is posted on the portal of legal information.

Previously, the decree was valid until July 1.

Western countries introduced a price ceiling for Russian oil from December 5 last year, for crude oil the limit was set at $60 per barrel, for petroleum products - depending on their type: at $100 per barrel for diesel, since it is sold at a premium compared to crude oil, and $45 per barrel for fuel oil sold at a discount. If products are sold for more than the ceiling, then companies from the G7 countries cannot provide services that accompany their transportation.

Putin responded by imposing a ban on the supply of Russian oil and oil products to foreign citizens and companies if the contracts "directly or indirectly provide for the use of a price cap mechanism." In April, the HEAD of state made an exception to this document, allowing compliance with the price limit for deliveries to friendly countries under previously concluded agreements.

On June 26, the price of Brent crude oil is approximately $74 per barrel. Putin in mid-June (at that time the price was about $76) said that RUSSIA was satisfied with oil prices , and the size of the discount on Russian fuel differs depending on the market, for some of them the price concessions are minimal.

In addition to price ceilings, the EU imposed an embargo on the supply of Russian oil and petroleum products from the same dates. Europe's rejection of Russian energy resources contributed to Moscow's reorientation towards Asian markets.

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At the end of May , BLOOMBERG reported that the volume of Russian oil supplies to Asia, in particular  CHINA and India, had peaked since the beginning of 2022. If in January last year they amounted to just over 1 million barrels. per day, then in May exceeded 3.8 million barrels.

According to Bloomberg, 63 thousand barrels were sent to Europe. per day, the only destination is Bulgaria. Previously, the European market received 1.5 million barrels each, the agency pointed out.