Fri. Nov 22nd, 2024

Moscow, 27 December 2022

Russian President signed an Executive Order on special economic measures in the fuel-and-energy sector in response to the price cap established on Russian oil and oil products by some foreign states.

This Executive Order was signed in response to the unfriendly actions taken by the United States, other foreign states and international organisations that sided with them, to establish a price cap on Russian oil and oil products, which is in violation of international law. The Executive Order is aimed at protecting the national interests of the Russian Federation and is in compliance with the following federal laws: No. 281-FZ On Special Economic Measures and Coercive Measures of December 30, 2006, No. 390 FZ On Security of December 28, 2010, and No. 127-FZ On Measures Impacting (Counteracting) the Hostile Actions of the United States of America and Other Foreign States, dated June 4, 2018.

The Executive Order has established that in connection with the ban imposed by the United States, and other foreign countries that sided with them, on the transport of Russian oil and oil products and related services, which is applied if the price of Russian oil and oil products is above the limit established by said foreign states (price limit mechanism), Russia bans the sale of oil and oil products to foreign companies and individuals if the contracts on these sales include the use of this mechanism directly or indirectly. The established ban applies to all stages of sales up to and including the final buyer.

The ban on Russian oil sales established by the current Executive Order becomes valid on the day of its entry into force.

The ban on sales of Russian oil products, as established by the current Executive Order, is to be applied on the date determined by the Government of the Russian Federation but no earlier than the date of its entry into force.

Russian oil and oil product sales, that are banned by the Executive Order, may be carried out under a special decision of the President of the Russian Federation.

The Government of the Russian Federation has been given related instructions.

The Ministry of Energy of the Russian Federation was instructed to monitor compliance with this Executive Order based on a procedure to be determined by the Government.

The Ministry of Energy of the Russian Federation was given the right to release official statements on the uses of the Executive Order with approval from the Ministry of Finance.

An interdepartmental working group on issues related to fuel-and-energy activities was charged with ensuring compliance with the Executive Order.

This Executive Order enters into force on February 1, 2023 and will be valid until July 1, 2023.

Source – The Russian Kremlin: http://en.kremlin.ru/acts/news/70196

     

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