Ban on Russian companies selling oil, petroleum products at G7 price cap extended until July 2025

MOSCOW. Dec 13 (Interfax) - The presidential decree banning Russian companies from selling oil and petroleum products at the price cap set by the G7 countries has been extended until the end of June 2025, according to a published document.

The current ban was implemented in February 2023 and is valid until the end of 2024. It has been extended several times.

The document prohibits the sale of Russian oil and petroleum products to foreign legal entities and individuals if contracts include a price cap clause established by the U.S. and a number of other countries.

The G7 countries and the EU (the Price Cap Coalition) have banned the import of Russian oil and petroleum products, but allowed ship owners from their countries to transport them and provide brokerage and other services if the goods are sold at or below the coalition's set price cap. The goal of the embargo and price cap on Russian oil and petroleum products is to limit Russia's budget revenues from energy sales while maintaining the global supply of oil and petroleum products.

The Kremlin considers the price cap a non-market instrument. Companies and individuals entering into supply contracts are obligated to ensure that agreements and any amendments do not contain provisions related to the price cap. They must also monitor compliance with this condition up to the final purchaser.