Russian President Vladimir Putin today threatened the West that he would "cut production" of Russian oil "if necessary" a few days after the EU, G7 and Australia adopted a price cap for Russian black at $60.
"We will consider a possible production cut if necessary," Putin said during a news conference in Bishkek on the sidelines of a regional summit.
The mechanism that the West has wanted for months and that the West implemented earlier this week is a "foolish decision," he said."
"It does not affect us in any way."
"The price ceiling that was proposed (at $60) corresponds to what we are selling today. In that sense, it does not affect us in any way," he said during the press conference.
The price of a barrel of Russian oil (Urals crude) is indeed evolving around $65, just above the European ceiling, causing a limited impact in the short term.
For countries importing Russian oil, "adopting this harmful, 'non-trade' solution will be foolish for the whole world," the Russian president also told reporters today.
Such a mechanism "concerns the whole world", Putin said, "as if someone agrees once the consumer sets the price, it will lead to the collapse of the [OIL] industry, because the consumer will always insist on having the lowest possible price," he said.
"We will not lose in any case," he assured."
On Friday, the 27 countries of the European Union, the Group of Seven (G7) of the world's most powerful economies and Australia agreed on a ceiling price of 60 US dollars for Russian-origin crude shipped by sea to limit Moscow's revenue to finance its military operation in Ukraine.
Therefore, only oil sold by Moscow at a price equal to or below $60 can continue to be delivered. Beyond this ceiling, companies will be prohibited from providing the services that enable maritime transport (cargo, insurance, etc.).
Source: APE-MPA
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