Russia bans oil exports to countries that abide by $60 price cap.

Russian dictator Vladimir Putin on Dec. 27 signed a decree to ban oil and oil product exports to countries complying with the West's $60 per barrel price cap on Russian crude.

The Russian ban on crude oil exports will come into effect on Feb. 1, but the date for the oil products ban will be determined by the Russian government and could be after Feb. 1.

The ban applies to oil supplied under contracts that "directly or indirectly" stipulate the $60 price cap. It is not clear if it will apply to oil priced below $60 per barrel under contracts that do not mention the price cap.

Under the decree, Putin can also exempt some of the oil exports to countries imposing the price cap from the ban.

The decree was presented as a response to “unfriendly" actions by the United States and their allies.

On Dec. 5, G7 and the EU started implementing the $60 per barrel price cap on Russian seaborne oil in order to limit the Kremlin's ability to fund its aggression against Ukraine.

Since the EU, the UK and the US have already banned the imports of Russian seaborne crude, the price cap mostly applies to other countries that still buy Russian oil. Insurers for the oil market, which are mostly based in the West, are banned from dealing with Russian oil priced above the cap.

The EU will also start implementing an embargo on Russian oil products starting from Feb. 5.