Azerbaijan news

Russia is preparing a response to the imposition of a price cap on its oil

Russia considers three mechanisms of response to the imposition of a maximum price ceiling on its oil.

Russia the G7 decision to impose a price limit on oil and European Union countries, as well as Australia.

The purpose of this is to limit Russia’s oil revenues and prevent it from financing the war.

“Vedomosti” website writes with reference to sources close to the government. Russia is currently considering three options for responding to these limitations.

Three options

The first option envisages a complete ban on the sale of oil to countries that support the imposition of a price ceiling on Russian oil, including intermediary countries.

In this case, if a neutral country buys oil, but its final customer is one of the G7 countries, then oil will not be sold to that neutral country either.

The second option prohibits the sale of oil under all contracts with an internal upper price limit.

The third option involves setting an indicative price.

According to this option, Russia’s Urals oil should be given a maximum concessional price compared to Brent oil.

In cases where the concession is increased, the sale of oil will be prohibited.

Sources say this option is unlikely.

The lowest price limit

Bloomberg agency, citing sources close to the Russian leadership, writes that the Russian authorities are working on determining the minimum price for oil.

According to the plan, Russian oil cannot be sold below this minimum price.

Sources say that Moscow is considering two options in this sense: either an unchanged minimum price limit or a maximum discount limit should be set in relation to Brent and WTI oils.

The interviewee of the agency said that Russia provides its customers with a simple and understandable pricing mechanism that will not harm neutral countries. offer does.

Although it is necessary to reduce production

From December 5, the embargo of EU countries on Russian oil transported by tankers, as well as the highest price limit, came into force.

G7, EU countries and Australia 60 per barrel of Russian oil dollars They set the highest price limit around.

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