Russia has stopped selling oil to any country or company adhering to a price cap agreed upon by Western nations earlier this month.
The G7 nations, Australia, and the European Union agreed to the price cap, which went into effect on December 5.
Countries cannot pay more than $60 (€56; £50) a barrel for Russian oil under the new limit.
Russia has now announced that it will refuse to sell oil and oil products to anyone who implements a price cap.
From February 1 to July 1, as stated in the presidential directive, the prohibition would be in place.
Also included in the regulation was the possibility that Russian President Vladimir Putin might provide “special permission” to supply the sanctioned countries.
The Group of Seven (G7) major countries proposed a price restriction in September to prevent Russia from using oil money to pay for the war in Ukraine.
However, a price surge and continued demand from places like India and China helped keep Russia’s revenue high, despite a drop in revenue from the West.
The European Union has already banned crude oil import from Russia via sea, and the United Kingdom, the United States, and other countries have made similar commitments.
The goal of the price ceiling is to limit Russian oil revenues further. It prevents G7 and EU tankers, insurers, and creditors from transporting any Russian crude sold for more than $60 a barrel.
The G7 is home to several of the world’s largest shipping and insurance corporations.
Meanwhile, Ukraine’s president, Volodymyr Zelensky, dismissed the price cap as a “weak” notion earlier this month, claiming that it would not harm the Russian economy.
The oil price cap is reducing export revenue. Russian Finance Minister Anton Siluanov warned on Tuesday that this might cause the deficit to widen above the 2% of GDP target in 2023.
The price of a barrel of oil has recently stabilised around $80, down significantly from its March and June highs of over $120.