Russian President Vladimir Putin has extended a ban on selling Russian oil and petroleum products to buyers who adhere to the Western-imposed price cap, keeping the restriction in place through the end of 2025.
The original decree, which took effect in February 2023, prohibits Russian companies from exporting oil to foreign buyers whose contracts reference the $60-per-barrel cap set by the so-called Price Cap Coalition—a group that includes the G7 nations and the European Union. This price cap was designed to limit Russia’s oil revenue while maintaining global supply. However, the Kremlin has rejected the measure from the beginning.
Under the updated order, any contract that follows the price cap is banned unless it receives direct approval from President Putin. Russian companies are also required to ensure that the price cap is not added later by intermediaries or final customers, even indirectly.
The price cap was first introduced in December 2022. As part of this sanctions package, Western countries stopped importing Russian seaborne oil and restricted shipping, insurance, and financing services for shipments priced above the $60 threshold. The policy aimed to reduce Moscow’s income from oil exports while avoiding a global supply crisis.
In response, Russia redirected exports to countries such as India and China, often selling at a discount but still outside the price cap framework. Russian officials have described the cap as a “non-market” tool that distorts global trade.
By extending the ban, Moscow is reinforcing its opposition to the price control mechanism. The move signals Russia’s determination to avoid engaging with buyers that comply with the cap, even if it results in fewer sales.
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