In a decree, the Russian Government has extended retaliatory measures against a price cap on its oil imposed by Western countries until the end of 2024. The decree had previously been enacted until 30 June 2024.
Under the price cap imposed by Western countries in December 2022, oil traders who want to retain access to Western financing for vital aspects of global shipping such as insurance must promise not to pay above US$60 per barrel for Russian seaborne oil. Consequently, Russia banned domestic oil exporters and customs bodies from adhering to Western-imposed price caps on Russian crude and rejected the supply of oil and oil products, provided that contracts for these supplies directly or indirectly involve this price cap. The measure was expected to last between 1 February 2023 and 1 July 2023 but it was extended several times, until the end of June 2023 and now until the end of June 2024.
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