Russia to halt supply of oil, oil products if prices capped

Photo taken on June 2, 2017 shows the well drilling field of the Udmurtia Petroleum Corp project in Udmurtia, a republic in western Russia. (Xinhua/Bai Xueqi)

The decree will enter force on Feb. 1 and be valid until July 1, 2023.

MOSCOW, Dec. 27 (Xinhua) -- Russian President Vladimir Putin signed a decree on Tuesday introducing countermeasures to a price ceiling imposed by Western countries on Russian oil.

The supply of Russian oil and petroleum products to foreign legal entities and individuals will be banned if a price cap is directly or indirectly stipulated in the contracts, according to the decree.

The Russian president could grant a special permission for the delivery of oil and petroleum products that are otherwise prohibited under the decree.

The document will enter force on Feb. 1 and be valid until July 1, 2023. The ban on oil will become effective on Feb. 1 and the Russian government will decide the date for the ban on petroleum products, which will be no sooner than Feb. 1.

A 60 U.S. dollars per barrel cap on the price of Russian seaborne crude oil agreed by the European Union, the Group of Seven nations and Australia came into effect on Dec. 5. Under the price cap, insurance, finance and other services for Russian oil shipments will be banned if the fuel sells for a higher price than the limit.