The Kremlin takes action against the EU decision of ‘maximum price for Russian oil’

Moscow is preparing to deliver a harsh response to the European Union’s (EU) price ceiling decision of $60 for Russian oil. The Kremlin will ban the sale of oil to Russian companies that participate in the price cap mechanism.

The EU has agreed to impose a maximum price of $60 per barrel on oil transported by sea from Russia. The application is expected to come into force on December 5, when the EU’s decision to cut Russia’s crude supplies by sea will take effect.

After the decision, the Kremlin’s response was immediate. According to the story quoted by the Russian news agency Tass, the Kremlin spokesman, Dmitry Peskov, said that they will not accept the maximum limit of 60 dollars imposed by the EU. “We are currently looking at it,” Peskov said in a statement yesterday. Some preparations have been made for such a title. We will not accept this limit, ”he said.

WHAT WILL RUSSIA DO?

Peskov said they will explain how the studies will be organized once the analyzes are complete. According to a Kremlin source; Movkova is preparing a presidential decree that will prohibit Russian companies from selling oil to any entity that participates in the maximum price mechanism.

The decree will essentially ban setting caps on contracts for Russian crude oil or products and block shipments to any country that has adopted the restrictions.

OIL PRODUCERS TAKE ACTION

On the other hand, oil-producing countries led by Saudi Arabia and Russia are expected to meet today to decide on the next phase of their production policies.

It was claimed that after the price ceiling, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) could make deeper cuts in oil production this week.

OPEC+, a group of 23 oil-producing countries, had recently hinted that it might implement deeper production cuts to spur a recovery in crude prices.

DISRUPTIONS CAN BE DEEP

“Ultimately, this decision will depend on the course of the oil price during the OPEC+ meeting and how much disruption there is in the markets due to the EU sanctions,” analysts at political risk consultancy Eurasia Group said in a note. of research seen by the media. .

Eurasia Group analysts said falling oil prices raised the risk of a further OPEC+ production cut. Jeff Currie, head of global commodities at Goldman Sachs, said in his analysis on the matter: “I think it’s very likely that we will see a cut.”