According to sources, the relevant decree is already being developed.
The Kremlin is drafting a presidential decree that would prohibit Russian companies and any traders that trade in Russian oil from selling it to countries or market participants that join the cap mechanism prices This is reported by Bloomberg, citing sources.
In effect, it would ban any reference to price caps in contracts for Russian crude oil or petroleum products, and it would also ban shipments destined for any countries that impose caps .
The European Union is currently trying to agree on how strict the price cap should be. Diplomats on Fridaysuspended negotiations on offers at the level of $65 per barrel, which is significantly higher than the current current price of Russian export oil. As disagreements over the level of prices remain, the talks have been postponed until Monday.
It is currently unclear what impact the price cap will have on trade, as well as the corresponding Kremlin decree, as official supporters of the measure are already refraining from buying Russian oil. This policy is effectively aimed at other large consumers, such as India, who will not have access to Western insurance and other transport services if they pay more than the fixed price.
Russian President Vladimir Putin and several other officials have repeatedly said the country will not supply oil to those who join the price cap. Deputy Prime Minister Aleksandr Novak said this week that the country would instead redirect supplies to “market-oriented partners” or cut production.
Read also: Poland agrees with Germany on joint sanctions against the Druzhba oil pipeline
Two weeks before the European Union sanctions come into effect Russia has already lost more than 90% of its market in the northern countries of the bloc, which used to be the mainstay of supplies from the Baltic and Arctic terminals.
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As reported on November 22, Chinese buyers partially suspended the purchase of Russian oil, expecting new sanctions and the price limit for oil of the Russian Federation, which Western countries plan to introduce.
