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Putin's decree on the Russian oil price cap
Summary
A look back at the decree signed on 27 December 2022, set against the Zelenskyy visit to Washington days earlier.
What did Moscow do in response to the Western price cap on its oil? On 27 December 2022, Russian president Vladimir Putin issued a decree prohibiting exports of Russian oil and petroleum products to countries and organizations that adhere to the US$60-per-barrel price cap.
The cap had been agreed earlier in December by Australia, the European Union and the G7 member states. Putin's decree was set to take effect on 1 February and remain in force until 1 July.
A week of diplomacy and shelling
The decree came days after Ukrainian president Volodymyr Zelenskyy travelled to the United States on 21 December 2022. It was his first official trip abroad since the Russian invasion of Ukraine. The visit lasted about 10 hours. Zelenskyy met US president Joe Biden, held a joint press conference and addressed a joint session of the US Congress. US Secretary of State Antony Blinken announced a US$1.85 billion military aid package for Ukraine ahead of the visit.
On the same day, 21 December, two people were killed and five injured when a hotel and a restaurant in Donetsk were shelled. Those injured included Dmitry Rogozin, a former Russian Deputy Prime Minister and head of Roscosmos, and Vitaliy Khotsenko, Prime Minister of the Donetsk People's Republic.
What the decree covered
The measure was framed around adherence to the price cap rather than around named countries. Any buyer that adhered to the US$60 ceiling fell within its scope. The window of 1 February to 1 July set out the period in which the ban would apply.
