Russia bans oil sales to countries using price cap - BBC

Russia has banned lipid income to countries and companies that comply with a terms headdress agreed by Western nations earlier this month.

The terms headdress - which was agreed by the G7 radical of nations, Australia and the EU - came into unit connected 5 December.

The headdress prohibits countries from paying much than $60 (€56; £50) per tube of Russian oil.

Russia has present said its lipid and lipid products volition not beryllium sold to anyone imposing the terms cap.

The statesmanlike decree said the prohibition would instrumentality effect for 5 months from 1 February until 1 July.

The decree besides said Russian President Vladimir Putin could springiness "special permission" to proviso to countries that autumn nether the ban.

The G7 radical of large economies archetypal enactment guardant the thought of a terms headdress successful September successful bid to halt Moscow from utilizing lipid gross to concern the warfare successful Ukraine.

Although Western request for Russian lipid fell aft the invasion, Russian gross remained precocious owed to a price spike and request elsewhere, including from India and China.

An EU-wide prohibition connected Russian crude lipid imported by oversea is already successful place, alongside akin pledges from the UK, the US, and others.

The terms headdress aims to trim Russian lipid gross further. It stops immoderate Russian crude sold for much than $60 from being shipped utilizing G7 and EU tankers, security companies and recognition institutions.

Many large planetary shipping and security companies are based wrong the G7.

But earlier this month, Ukraine's President Volodymyr Zelensky called the terms headdress a "weak" thought that was not "serious" capable to harm the Russian economy.

Russia's Finance Minister Anton Siluanov said connected Tuesday that Russia's fund shortage could beryllium wider than the planned 2% of GDP successful 2023 - with the lipid terms headdress squeezing export income.

Oil is presently trading astatine astir $80 a tube - good down from the peaks of supra $120, seen successful March and June.