The Kremlin has called the level of the oil price ceiling discussed by the EU “unexplainable figures”

Russia has no plans to supply oil and gas to the countries that will join the introduction of a price ceiling on these energy resources, but the very figures being discussed in Europe so far look unexplained. Russian presidential spokesman Dmitry Peskov told reporters on Thursday.

The Kremlin has called the level of the oil price ceiling discussed by the EU "unexplainable figures"

“The Europeans so far have very unclear discussions on this ceiling in the nuances. There is a feeling that they are just trying to make a decision for the sake of a decision, not for effect, but for the sake of a decision to tick the box that a ceiling has been introduced,” a Kremlin spokesman said, commenting on the possibility of setting a price ceiling on Russian oil in the range of $65-70 per barrel.

Peskov noted that “this is all subject to deep analysis.” According to him, “it is still difficult to speculate” what impact it will have on the energy market. “We are proceeding so far from President [Vladimir] Putin’s attitude, from 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 analyse the situation “before formulating a position”, the Kremlin spokesman added.

Russian oil currently trades at around $70 a barrel on a discounted basis, so from an economic perspective a $65-70 a barrel ceiling would not make much difference. However, it could have long-term strategic implications in the event of a new spike in oil prices. European experts estimate that there is a serious risk that Russia will stop supplies to the countries that join this mechanism, even if it is painless for Russia at the moment. This, in turn, could cause a sharp rise in prices on the world market if the other oil producers do not sharply increase production.

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