The decision of the collective West to impose a cap on the supply of Russian tanker oil will only increase global uncertainty and lead to higher prices for consumers.

So the Russian Embassy in Washington commented on the agreement between the G7 countries and Australia to introduce a ceiling on oil prices from Russia.

“We are talking about reshaping the basic principles of the functioning of free markets.

The result of such steps will be a widespread increase in uncertainty and an increase in costs for consumers of raw materials, ”the diplomatic mission emphasized.

At the same time, statements that the introduced limit will allegedly meet the interests of developing countries are in fact only a plausible pretext for Western countries.

“Washington strategists ... carefully hush up the fact that the current imbalances in the energy sites are the result of their own rash actions.

First of all, sanctions and bans on resources from Russia,” the diplomats stated.

In this regard, all the steps taken in this direction are an attempt to solve the problems created by the West itself from scratch, according to the diplomatic mission.

They also noted that the ceiling on Russian oil creates a precedent for the introduction of similar measures in relation to the export products of other states for political reasons.

“Regardless of the current “flirting” with a dangerous and illegitimate instrument, we are confident that our oil will continue to be in demand,” the embassy added.

  • Embassy of the Russian Federation in Washington

  • AP

  • © Susan Walsh

The Kremlin reported that Moscow was ready to introduce a ceiling on oil and now experts are analyzing the situation.

“We will not accept this ceiling, and how the work will be organized, after the analysis, which will be quickly carried out, we will report,” said Presidential Press Secretary Dmitry Peskov.

In turn, the permanent representative of the Russian Federation to international organizations in Vienna, Mikhail Ulyanov, noted that Europe will have to live without Russian oil from this year, since Moscow has already indicated that it does not intend to supply fuel to countries that maintain an anti-market price ceiling.

The diplomat also expressed the opinion that soon the EU will begin to accuse Russia of using oil as a weapon.

Price coalition

The agreement between the G7 countries (USA, Canada, France, Germany, Italy, Japan, Great Britain) and Australia to set a price ceiling for Russian oil was announced on December 2 by the US Treasury.

The restriction, which will take effect on December 5 "or shortly thereafter," applies to crude oil shipped by sea.

In the future, by February 5, 2023, it is planned to agree on a price limit for oil products from Russia.

At the same time, as noted in the department, for those who, when purchasing oil, will comply with the price limit of $60 per barrel, access to the services of Western companies in maritime transportation and their insurance will be retained.

According to the US Department of the Treasury, companies from the G7 countries control about 90% of the shipping market.

In this regard, Russia has two options for further developments, the ministry believes: Moscow can either sell its oil within the established limit through G7 service providers and remain on the world market, or turn to third-party conductors, who are allegedly less reliable and more expensive, limiting their sales.

At the same time, Washington is confident that the agreed $60 per barrel is allegedly a fair price for Russian oil.

“The price is set at a level that Russia has historically considered acceptable: that is, it is higher than the cost of production and is comparable to the prices at which Russia sold (oil. -

RT

) before the conflict in Ukraine,” the US Treasury explained.

The department also claims that the price threshold is set by Western countries, allegedly in the interests of the entire global market, as well as developing countries.

According to US Treasury Secretary Janet Yellen, the agreement reached with partners was "the culmination of efforts" undertaken by the Western coalition over many months.

"The price ceiling will help flow discounted Russian oil to global markets and is designed to help protect consumers and businesses from global supply disruptions," she said in a statement posted on the ministry's website.

  • oil tanker

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  • © Stephen Swintek

On December 2, the European Union also announced a consensus on a price ceiling for Russian oil.

The agreement was reached after Poland abandoned its demands to radically lower the bar under discussion.

As previously reported by the newspaper Politico, citing sources, Warsaw insisted on a price of $30 per barrel.

In Brussels, as in Washington, the decision was explained, among other things, by “concern” for developing countries.

“Firstly, it (price ceiling. -

RT

) enhances the effect of our sanctions.

Secondly, it will further reduce Russia's income.

Thirdly, it will at the same time stabilize global energy markets, as it allows EU operators to trade in some part of the Russian oil transported by sea, act as intermediaries in relation to it, and also transport it to third countries, ”the head said in a video message. European Commission Ursula von der Leyen.

"Anyone Could Be Next"

At the same time, the Russian Federation has repeatedly emphasized that the introduction of price restrictions on Russian oil will lead to a shortage in the energy market, since Moscow does not intend to supply raw materials at a loss.

In particular, President Vladimir Putin pointed this out during the Russian Energy Week international forum on October 12.

“Russia will not ... pay for someone else's well-being at its own expense.

We will not supply energy resources to those countries that will limit their prices ... We will not act to our detriment, ”Putin said.

He also noted that any attempts to establish any artificial price ceiling would worsen the investment climate in the entire world energy sector, and then provoke an increase in the global shortage of energy resources and a further increase in their cost.

Russia's intention not to supply its oil to countries that impose restrictions on its cost was also confirmed on October 13 by Deputy Prime Minister Alexander Novak.

According to him, any such initiatives are a bad precedent, which can at any moment spread to other suppliers and to all world trade.

Later, on December 1, at a press conference on European security issues, Russian Foreign Minister Sergei Lavrov called the attempts of Western countries to impose a price on the market from outside, while earlier they advocated its freedom and fair competition, "an interesting development of events."

“It, among other things, sends a powerful long-term signal to all states that they need to think about how to move away from using the tools imposed by the West as part of its system of globalization,” the minister said.

- Russia already "didn't like it".

China becomes the object of sanctions.

He is prohibited from selling and buying products that Americans want to use to strengthen their competitive advantage.

Anyone can be next."

  • Refinery

  • RIA News

  • © Alexey Maishev

"Step is depressing"

Experts interviewed by RT agree that the price ceiling for Russian oil agreed upon by the West has no economic basis.

As Aleksey Mukhin, director general of the Center for Political Information, noted in an interview with RT, this is an exclusively political measure designed to bully objectionable states.

“In its essence, it is completely illegal, since it does not correspond in any way with the rules and regulations of the World Trade Organization.

The move lobbied by the Americans is of a depressing nature and is aimed at luring the G7 countries and other states into the illegal activities of the United States, ”the expert said.

His position is shared by Igor Yushkov, a leading analyst at the National Energy Security Fund.

In a conversation with RT, he called the introduced price limit political sanctions.

According to him, the very idea of ​​the maximum price for Russian oil was born from the desire of Western countries to soften their previous restrictions, with which they wanted to isolate the Russian Federation on the world market.

“However, this led to the fact that Russia refocused on Asian markets, and there was a shortage of oil in the rest, inflating prices.

It turned out that the Russian Federation, even under conditions of restrictions, was able to earn money, while the countries that adopted the sanctions were forced to overpay.

Therefore, now a “compromise” has been found, which, according to its authors, will keep Russia in the oil market and will not allow this market to become empty again,” he explained.

  • Offshore drilling platform and support vessel

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  • © Sergei Dubrovsky

However, the idea of ​​a ceiling will only work if it is supported by a large majority of buyers in the market, the expert clarified.

“But we see that this is not to be expected.

Neither China, nor India, nor Turkey, nor Southeast Asia will officially join this price ceiling coalition, so the big question here is how it all works in practice, ”added Yushkov.

Aleksey Mukhin is also sure of the opposite effect of the price ceiling for fuel from the Russian Federation introduced by the West.

According to him, statements by Western countries that limiting the price of Russian oil will improve the situation on the world energy market will not be confirmed in practice.

“These restrictions will make oil more difficult to access.

And if Russia shows integrity and refuses to follow the new rules of the game, this will lead to a jump in prices and complicate the logistics of shipping, which will also affect the cost of this energy resource, ”Mukhin said.

In turn, Igor Yushkov expressed the opinion that the introduced oil price limit would be used by the West as a precedent to put pressure on other countries that would not please him.

“The current decision on oil is an attempt to test a new mechanism for influencing prices on the global market.

Because if this trick works with Russia, then in the future it can be used in relation to other large exporting countries.

Therefore, now, I think, world players will very carefully evaluate the measure imposed by Western countries and ultimately will not support it, ”the expert concluded.