Putin extends retaliatory measures to oil price ceiling

Russian President Vladimir Putin has extended until June 30, 2025 the ban on the supply of oil and petroleum products from Russia at the price ceiling. The corresponding decree of the head of state was published on December 13 on the official Internet portal of legal information.

The effect of the previous ban ends on December 31, 2024.

According to the document, changes are made to the presidential decree of December 27, 2022 № 961 "On the application of special economic measures in the fuel and energy sector in connection with the establishment by some foreign countries of a ceiling price for Russian oil and petroleum products".

The document prohibits the supply of Russian oil and oil products if the contracts for these supplies directly or indirectly provide for the use of the price ceiling, which was introduced by the G7 countries, the European Union (EU) and Australia.

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Prior to that, on March 27, US Assistant Secretary of State for Energy Jeffrey Pyatt said that the Group of Seven (G7) countries are discussing the possibility of lowering the price ceiling on Russian oil. The official added that the United States and its partners in the coalition that is working to limit prices are "committed to working to deprive Russia" of revenues from the sale of this energy carrier.

At the same time, the Russian Finance Ministry reported on June 10 that oil and gas revenues of the Russian budget increased by 73.5% from January to May 2024, there is a steady positive trend. Revenues amounted to Br4.951 trillion, exceeding the figures of the same period of the previous year (+73.5%). On June 5, Bloomberg agency noticed that the Russian market has successfully adapted to the sanctions. The agency attributed the growth of revenues to the increase in Urals oil prices.

In February, Russian Deputy Prime Minister Alexander Novak said that global demand for oil will increase until at least 2040. According to him, the growth rate will be about 14%.