Wednesday, February 1, Russia banned the supply of oil to "unfriendly" countries, which imposed a price ceiling on Russian oil products, reports Deutsche Welle.

According to a decree of Russian President Vladimir Putin, signed on December 27, the supply of Russian oil and petroleum products is prohibited to foreign nationals and companies, if the contracts "directly or indirectly provides for the use of the mechanism of fixing the price ceiling."

The export of oil at a capped price is allowed only with the president's permission. The ban will be valid from February 1 to July 1. The duration of the ban on the supply of petroleum products will be determined by the government.

As part of the eighth package of sanctions against Russia, a price ceiling of $60 a barrel for Russian oil exported by sea has been in effect since December 5.

Western countries are setting price ceilings to make it harder for Russia to finance the war against Ukraine and, at the same time, to prevent oil supplies from stopping and world oil prices from skyrocketing. The price ceiling means that the G7 countries and the EU will provide insurance and financial services related to Russian oil products only if they have been purchased at or below the ceiling price.