Starting from 1 February, a ban on oil supply to “unfriendly countries” — the countries that previously introduced a price cap on Russian oil — has come into effect in Russia. Russian President Vladimir Putin signed the law on retaliatory measures on 27 December.
Supply of Russian oil and oil products is prohibited to foreign citizens and companies at all stages of deliveries, if a contract “directly or indirectly stipulates the mechanism of fixing a price limit”.
Oil export at limited value can only be allowed by the president. The ban will be enforced from 1 February to 1 July 2023. However, exceptions could be made upon a special order from the president.
On 3 December, G7 countries (Germany, Italy, France, the UK, Canada, Japan, and the US) and Australia agreed on a price cap for Russian oil at $60 per barrel. On 5 December, the EU decision went into effect. Also on 5 December, an embargo on maritime Russian crude oil deliveries entered into force.
Hungary was exempted from following the price cap, Minister of Foreign Affairs of Hungary Péter Szijjártó said. According to him, by making sure Hungary did not have to follow the restrictions, the country “was able to protect the security of its energy supply”.
A price cap on Russian gas was also agreed upon — a little less than $2,000 per 1,000 cubic metres.
