Putin Orders Sudden Ban of Oil Exports

Putin Orders Sudden Ban of Oil Exports

(RightWing.org) – Russian President Vladimir Putin is taking action against harsh rate cap sanctions collaboratively implemented by the G7 and Australia in early December. In an official decree published on December 27, the foreign leader announced a new ban on the export of Russian oil to any country that agrees to comply with the restriction.

The G7’s “Price Cap Coalition” first began deliberating over whether to cap the rate at which participating countries could purchase, ship, or insure Russian oil some time ago. On December 5, leaders officially agreed on a ceiling rate of $60 per barrel.

According to Reuters, participating countries hoped the rate cap would financially punish the Russian government for its ongoing war against Ukraine. They also believed refusing to accept Urals crude at prices in excess of $60 would have a stabilizing effect on out-of-control fuel prices around the globe.

Putin’s retaliatory decree, which accuses the countries involved of engaging in price-fixing measures, is currently set to take effect in February 2023. It will remain in place until at least July. But according to an earlier interview with the president, the foreign government is more than willing to take additional action if it fails.

During a December 9 appearance on Rossiya 24 TV, President Putin warned consumers the G7’s proposed rate caps wouldn’t work out in their favor. He insisted even if the coalition managed to lower prices, they would eventually skyrocket once again, settling out at even higher levels.

Putin also confirmed Russia was mulling over the potential for another possible retaliatory measure. “We will think, if necessary, about a possible reduction in production,” he explained.

Copyright 2023, RightWing.org