Russian authorities will create a mechanism to ban the use of the oil price cap – Ground Forces

Russian Deputy Prime Minister Alexander Novak said the government is currently working on a mechanism to ban the use of a price cap on Russian oil, which the EU and G7 countries have recently agreed to. According to him, Russian authorities are willing to reduce oil production if European importers start applying the price cap.

“We believe that this instrument is not commercial, it is ineffective, it grossly interferes with market instruments and it is contrary to all rules, according to the WTO, for example. In our practice, we will not use tools related to the “price cap”. To do this, we are currently working on mechanisms to prohibit the use of the price cap tool, regardless of what level it will be set,” Novak said on Rossiya 24 TV channel.

On December 2, EU countries approved the introduction of a price cap for Russian oil at US$60 per barrel. The European countries’ decision was criticized by Russian officials as contrary to market principles, and Russian President Dmitry Peskov’s press secretary said the Kremlin refused to accept the energy restriction.

SOURCE: Kommersant