Peskov called the oil price ceiling discussed by the EU “inexplicable figures”

Russia does not plan to supply oil and gas to countries that will join the introduction of a price ceiling for these energy resources, but the figures themselves being discussed in Europe still look difficult to explain. This was announced to journalists on Thursday by the press secretary of the President of the Russian Federation Dmitry Peskov.

“The Europeans still have very incomprehensible discussions in the nuances of this ceiling. Little-explained numbers are called, it feels like they are just trying to make a decision for the sake of a decision – not for the sake of effect, but for the sake of a decision, in order to put a tick that the ceiling has been introduced, ” – said the Kremlin spokesman, commenting on the possibility of establishing a price ceiling for Russian oil in the range of $ 65-70 per barrel.

Peskov noted that “all this is subject to deep analysis.” According to him, “it is still difficult to imagine” what impact this will have on the energy market.

“For the time being, we are proceeding from the President’s directive [РФ Владимира] Putinfrom his position that we will not supply oil and gas to those states that will introduce and join the ceiling”, Peskov continued.

However, the Russian Federation, seeing the figures being discussed in Europe, intends to analyze the situation “before formulating a position,” the Kremlin spokesman added.

Earlier it was reported that the ambassadors of the EU countries did not agree on a common position on the introduction of a ceiling on prices for Russian oil within the Group of Seven (G7), negotiations will continue. According to sources, diplomats discussed the possibility of introducing a price ceiling in the range of $ 65-70 per barrel, but the position of different EU countries is different. A number of states, including Poland and the Baltic countries, consider this ceiling too high, and countries that receive a significant part of their income from sea transportation of oil – Greece, Cyprus, Malta and others – believe that the threshold level is too low and threatens to undermine world trade oil.

Russian oil is currently trading at around $70/bbl on a discount basis, so the $65-70/bbl cap won’t matter much from an economic standpoint. However, this could have long-term strategic implications in the event of a new surge in oil prices. According to European experts, in this regard, there is a serious risk that Russia will stop deliveries to countries that will join this mechanism, even if it is painless for the Russian Federation at the moment. This, in turn, may cause a sharp rise in prices on the world market if other oil producers do not sharply increase production.

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