Russian Deputy Prime Minister Alexander Novak said Russia would stop supplying oil to world markets if the cap did not cover production costs, the Kommersant newspaper reported. It is recalled that the G7 countries have declared that they are working to set a ceiling on Russian oil.
“If these prices they are talking about are lower than the cost of oil production, then of course, Russia will not supply oil to world markets, we will not operate at a loss,” Alexander Novak was quoted as saying on state television.
The G7 countries said they were working on a ceiling on Russian oil prices to limit Russia’s revenue due to rising energy prices and the war between Russia and Ukraine. According to the International Energy Agency, Russia’s revenue from oil exports increased by $20.4 billion, or 40% compared to 2021. According to Bloomberg, the ceiling could be set at $40-60 per barrel (Russian oil trades at 80-85 dollars on average). According to the Washington Post, the idea of the US capping oil prices has been met with skepticism both at home and abroad.
Source: Capital
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