MOSCOW, 4 Dec. Introducing a ceiling on Russian oil prices will turn out to be a failure for the US and Europe, writes Peter Doran in an article for The Hill.
«The ceiling on Russian oil prices has all the signs of an impending historic fiasco. Now there is virtually no free oil left on the world energy market. Therefore, there is a high risk that after the introduction of restrictions, oil prices will skyrocket,» the publication says.
According to Doran, back in the summer the US and its allies considered such a move an elegant solution to the problem of reducing Russia's income, but now the situation has completely changed.
«A price ceiling of $60 per barrel is beneficial for Russia, because the cost of producing Russian oil is between $20 and $40,» the author concludes.
This week, the G7 countries, the EU and Australia agreed to limit the price of Russian oil at $60 per barrel. The decision concerns shipments by sea, it should come into force simultaneously with the EU embrago — from December 5 for crude oil and from February 5 for petroleum products.
President Vladimir Putin, commenting on this initiative, stressed that Russia will not supply anything abroad to the detriment of their interests. Deputy Prime Minister Alexander Novak, for his part, added that Moscow would not export oil to countries that set a price limit, neither at $60 per barrel, nor at any other cost. According to him, Russia will work with those who are ready to cooperate on market terms.