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New decisions on price cap only concern limited number of countries — minister

On December 27, 2022, Vladimir Putin signed a decree on the application of special economic measures in response to the establishment of a price cap for Russian oil products and oil by a number of countries

MINERALNYE VODY, May 4. /TASS/. Russian President Vladimir Putin’s decree, which removes the ban on export of oil and petroleum products under the price cap terms for friendly countries, only concerns a limited number of countries, with which intergovernmental agreements based on market principles had been concluded, Energy Minister Nikolay Shulginov said on Thursday.

"The decree concerns a limited number of countries, with which intergovernmental agreements based on market principles had already been concluded," he told reporters on the sidelines of the Caucasus Investment Exhibition in Mineralnye Vody.

Russian President Vladimir Putin has withdrawn supplies to friendly countries under contracts signed before February 1, 2023, from the ban on exports of oil and oil products on conditions of the price cap policy. The relevant decree was signed on April 28.

On December 27, 2022, Putin signed a decree on the application of special economic measures in response to the establishment of a price cap for Russian oil products and oil by a number of countries. The ban on oil supplies at ‘capped’ prices is effective from February 1 to July 1, 2023. A separate paragraph of the decree leaves the head of state the right to make special decisions on the supply of oil and oil products, the implementation of which is prohibited by the decree.

On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force. G7 nations, the EU and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. Moreover, starting February 5, 2023, similar restrictions on deliveries of petroleum products from Russia were enforced as the EU Council officially greenlighted the decision, in conjunction with the G7, to introduce a price ceiling on Russian petroleum products supplied by sea at $100 for premium oil and at $45 for discount.

The Caucasus Investment Exhibition is taking place from May 3 to 4 at MinvodyExpo in the city of Mineralnye Vody. The exhibition is aimed at developing the regions that make up the North Caucasus Federal District. The event brings together key investors, initiators of investment projects, development institutions and banks in the North Caucasus, with experts, entrepreneurs and manufacturers presenting new economic vectors and business ideas, as well as current development trends and strategies. The event is supported by the Ministry of Economic Development of the Russian Federation and organized by the Roscongress Foundation, while Northern Caucasus Resorts is its strategic partner. TASS is the event’s information partner.

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