Russian Prime Minister Mikhail Mishustin has signed an agreement requiring all Russian oil companies to comply with previous orders banning exports to buyers who comply with the price cap mechanism for Russian crude oil or crude oil products.
Note that no penalties will be imposed on Russian companies for non-compliance, according to Upstream.
A Mishustin resolution signed this week bans Russian oil producers from signing sales contracts with buyers that engage in price cap clauses imposed by the G7. The resolution requires producers to submit a declaration to Russian customs for each consignment sold, attesting to the fact that no price cap mechanism is used. Russian Customs will then review old and new crude oil export contracts, and customs reserves the right to suspend shipments that violate President Putin’s orders.
Further complicating matters, the decree requires all Russian oil producers to track their sea freight from origin to final destination. Make sure you don’t include a price cap clause.
If the producer discovers that the price cap clause has been included in any paper after the crude oil leaves the country of origin, it will be given 30 days to rectify the violation, and if customs fails to rectify it, it will go to customs. You will be given an additional 5 days to notify us. Again, no penalties are specified for non-compliance.
Last month, Russia shipped crude oil to India under a price cap mechanism.
Oilprice.com by Julianne Geiger
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