Russia Drafts Decree Banning Oil Sales to Price-Cap Participants
A worker monitors drilling procedures at a gas drilling rig on the Gazprom gas and condensate field in the Lensk district of the Sakha Republic, Russia.
Source: Bloomberg
The Kremlin is drafting a presidential decree that will prohibit Russian companies and any traders buying the nation’s oil from selling it to anyone that participates in a price cap, according to a person with knowledge of the matter.
The decree will forbid dealings with both companies and countries that join the price-cap mechanism, the person said, without giving an exact definition of how participation in such a mechanism would be defined. It would essentially ban any reference to a price cap in contracts for Russian crude oil or products, and prohibit loadings destined for any countries that adopt the restrictions, according to the person, asking not to be named because the matter isn’t public yet.