Russian President Vladimir Putin on Tuesday issued Russia's response to the Western price cap by signing a decree banning the supply of oil and petroleum products to countries involved in price caps from February 1 for five months..

The G7, the European Union and Australia agreed this month to impose a $60 per barrel price cap on Russian offshore crude from December 5.

The Kremlin decree states: “This. comes into force on February 1, 2023 and is valid until July 1, 2023"

The export of crude oil will be banned from February 1, but the date for the ban on petroleum products will be determined by the Russian government and may be after February 1.

The decree contains a clause that allows Putin to lift the ban in special cases.

Recall that two days before the start of the oil embargo and the price limit for Russian crude oil, the Kremlin announced that Russia would not accept a price limit for its oil and is now considering how to respond to this.. And the very next day, Russian Deputy Prime Minister Alexander Novak announced that Russia would not export oil, which is subject to the price cap set by the West, even if it has to come to terms with a drop in oil production.