Russian Oil Becomes Hotly Contested, Putin Refuses to Supply These Countries
Jakarta, CNBC Indonesia - The Russian government has officially confirmed that it will not supply oil to countries supporting the price cap scheme, which it considers an “anti-market” policy. This firm stance by Moscow comes amid soaring global crude oil demand due to escalating conflicts in the Middle East that threaten global energy stability.
Russia’s Deputy Foreign Minister Andrey Rudenko stated that the energy market is currently in a highly volatile state due to supply tightening and ongoing price increases. He reaffirmed Moscow’s position towards countries that have supported Ukraine, including G7 members and Australia, which have sought to gradually halt imports of Russian oil and gas since the escalation of the conflict in Ukraine in 2022.
“The energy market is fluctuating due to supply tightening and rising prices. Russia will not sell oil to provocative countries,” Andrey Rudenko told Izvestia on Tuesday (31/03/2026).
Western countries had previously reduced purchases and forced Russia to sell crude oil at significant discounts to global benchmarks through the price cap system, currently set at around US$44 per barrel.
However, in recent weeks, this trend has reversed, with Russian Urals crude being sold to India and other buyers at a premium.
The price of Urals DAP West Coast India was recorded exceeding US$121.5 per barrel on 19 March 2026, meaning it traded about US$3.9 per barrel above Dated Brent. This contrasts sharply with early March, when Russian oil was still discounted by around US$12 per barrel.
Regarding the possibility of talks with “unfriendly” countries like Japan to resume oil purchases, Rudenko noted that Tokyo remains bound by the price cap rules. He described the policy as an anti-market action that disrupts the overall global supply chain.
“Tokyo is bound by the price cap, which is an anti-market action and disrupts the supply chain,” Rudenko added.
This energy crisis has been exacerbated after the United States and Israel launched coordinated strikes on Iran on 28 February, triggering retaliatory attacks across the region. The conflict has led to a de facto closure of the Strait of Hormuz, a crucial route carrying about one-fifth of the world’s daily oil supply, after Iran blocked transit for ships from countries deemed unfriendly.
The closure of this route has caused oil prices to surge nearly 50%, reaching almost US$120 per barrel earlier this month. Amid this wild price spike, the United States surprisingly lifted sanctions temporarily on Russian oil loaded onto tankers before 12 March, with sales licences valid until 11 April.
US Treasury Secretary Scott Bessent revealed that this temporary easing of sanctions is a strategic move impacting Moscow’s cash flow. The step is estimated to provide Russia with significant additional budgetary revenue amid global tensions.
“This step could bring Russia budgetary revenue of around US$2 billion,” Bessent said.
Following Washington’s easing of restrictions, several Asian countries quickly moved to secure crude oil supplies from Russia. A number of countries, including Thailand, the Philippines, Vietnam, and Indonesia, have signalled interest in purchasing Russian oil, while major importers like India and China continue to absorb available oil cargoes under the exemption scheme.