And he said that Russia will not sell oil to countries that impose price restrictions.
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President of the Russian Federation Vladimir Putin said that Russia will not sell oil to countries that impose a price ceiling , and allowed a reduction in oil production while talking to journalists during a visit to Bishkek (Kyrgyzstan).
Putin was asked to comment on the EU's introduction of a price ceiling for Russian oil at $60 per barrel. The initiative of the European Union and the G7 was also supported by non-aligned Australia and Norway.
“As for our reaction: we simply will not sell oil to those countries that make such decisions. We will think, maybe even about the possible, I am not saying that this is a decision now, we will think about the possibility of reducing production if necessary,” Putin said.
According to him, when reducing production, Russia will focus on agreements with OPEC+ regarding production limits. Russia is also considering response options, the final response option will be fixed in a presidential decree, Putin clarified.
“We are thinking about it. There are no solutions yet. Well, the specific steps will be outlined in the decree of the President of Russia, which will be issued in the coming days,” he added.
The Russian autocrat also claimed that Russia will not suffer financially from the introduction of the price ceiling, as it corresponds to the prices, by which the Russian Federation sells its oil. “There will be no losses under any circumstances,” Putin asserted.
At the same time, even before the ceiling was introduced Russian Urals oil was already trading below $60/barrel. And the Ministry of Finance of the Russian Federation due to the collapse of oil prices, doubled the forecast for the “hole” in the budget.
Read also: The Economist: Setting a “ceiling” for Russian oil is not a miracle -weapons against the Kremlin
We will remind, on December 5, the embargo on sea supplies of oil from Russia to the EU countries came into force, and the price ceiling for Russian oil also began to operate. An “insurance boycott” of Russian oil also began to operate – insurance companies are prohibited from providing insurance services to companies whose tankers transport Russian oil in violation of the price limit. In response to sanctions, Russia wants to set a minimum price for its oil, which is exported.
Related video
How will the hydrocarbon price embargo work in practice for the aggressor country? What price will eventually be set and what obstacles await along the way? Read Oleg Hetman's article “Oil price restrictions will begin with Turkey closing the Bosphorus and Dardanelles for tankers with Russian oil“.
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