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Russia prepares the response to the oil price ceiling


December, 08 2022
watermark Economic news

Russian Finance Minister Anton Siluanov said that it is too early to assess the impact on the Russian budget from the introduction of the oil price ceiling. Russia is currently forming retaliatory measures. 


Siluanov added that the introduction of a price ceiling is an absolutely non-market mechanism, and such non-market measures will inevitably affect raw material prices or supply volumes. 


The Minister stressed that the Russian Federation is preparing retaliatory measures. In particular, Russia intends not to sign contracts where price regulation and ceilings of these prices will be mentioned.


Recall that Western oil sanctions came into force on Monday, December 5. According to the new measures, the European Union ceases to accept Russian oil transported by sea, and the G7 countries, Australia and the EU impose a price limit on its sea transportation at $60 per barrel.


Russian Deputy Prime Minister Alexander Novak, commenting on the decision and the upcoming embargo, said that Russia will not accept the oil price ceiling, even if it has to cut production. Novak added that such Western restrictions are interference in market instruments, and Russia is ready to work only with those consumers who will work on market conditions.


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