Russia has issued a sweeping executive order banning the sale of oil and petroleum products to Australia, in response to Australia and other G7 countries voting to impose a price cap of $60/b for seaborne crude oil from Russia. The decision was made in response to Russia’s invasion of Ukraine earlier this month.
The oil embargo is seen by many as a severe and unexpected blow to Australia, which is the world’s third-largest exporter of oil and petroleum products. It is estimated that Australia will now be forced to look elsewhere for its oil and petroleum needs, at a substantially higher cost.
The executive order, signed by President Vladimir Putin on Tuesday night, also bans the sale of oil and petroleum to any other country that has taken action against Russia
The news of the oil embargo has sent shockwaves throughout the industry, with analysts predicting a major disruption to global oil supply. It is believed that the ban could lead to a significant increase in global oil prices, as well as an increase in the cost of oil and petroleum products in Australia.
Australia was included on the list of nations affected by the Kremlin order, which will come into effect in February 2021 and last until July 1.
Since April, Australia has already forbidden the import, purchase, and transportation of Russian oil, gas, and refined petroleum products.
