Domestic oil exporters will reportedly have to make sure buyers don’t use the mechanism for resaleRussian exporters may soon be forbidden from selling oil to buyers under the Western price cap mechanism, the Kommersant news outlet reported, citing government sources.According to the report, the Ministry of Energy has prepared a draft decree obliging Russian legal entities and individuals to avoid Western-mandated oil price limit provisions in their contracts with foreign buyers. They will also have to ensure that these buyers, including traders and agents, comply with this requirement for the further resale of Russian oil.The contracts will also have to pass inspection at the Federal Customs Service. If the agency finds any violations, in particular, any mention of the price cap, it may ban the export of the products specified in the contracts.Russia has been opposed to the price cap initiative from the start. Last month, President Vladimir Putin signed a decree banning the supply of Russian oil and oil products to foreign buyers that “directly or indirectly” mention the cap in their contracts. The ban will be effective for five months, from February 1 to July 1, 2023. The Kremlin specified that the decree also applies to contracts signed prior to February 1, if they mention the price cap.
This article was originally published by RT.