According to Kremlin boss Vladimir Putin, the upper price limit for Russian oil decided by the West is not causing any losses to the commodity powerhouse. However, the non-market economy regulation of prices is destroying this economic sector, Putin told journalists in the Kyrgyz capital Bishkek on Friday. Putin made it clear that the upper limit of $60 per barrel (159 liters) set by the EU and the seven leading industrialized nations (G7) corresponds to the price at which Russia is currently selling its oil.
However, the energy superpower will no longer sell oil to countries that support price fixing, he said. Putin also confirmed that Russia is considering cutting oil production. Nothing has been decided yet. However, the Russian President announced a decree with reactions to the western price cap, which will be available soon.
The price cap applies to oil transport by sea. Russia sees this as a violation of the laws of the free market. After long and difficult negotiations, the EU countries had previously agreed on a price cap for Russian oil, and the G7, Australia and Norway followed suit. The states want to force Russia to sell oil below the market price to buyers in other states in the future. The aim is to dry up the Kremlin’s war chest. In addition to Germany, the G7 also includes the USA, Canada, France, Great Britain, Italy and Japan. Germany currently chairs the group.
