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Russia weighs responses to oil price caps

Moscow, Dec 7 (Prensa Latina) The Russian authorities are examining three retaliatory measures against the limit of per barrel on domestic oil, imposed by the Group of Seven (G-7) and the European Union, informed the Kremlin.

As published on Wednesday by the official government site, the first option consists of a total ban on the sale of crude oil to the states that supported the restriction, even if they do not buy raw materials from Russia directly, but through intermediary countries or even its chains, which means that the supply will be blocked if a neutral country buys the oil, but its final recipient is a member of the G-7.

The second option would prohibit exports under contracts that include a price cap clause, regardless of the receiving nation.

The third option would provide for the introduction of the so-called indicative price, that is, the definition of a maximum discount for Urals brand crude with respect to Brent as a reference; if the discount increases, the sale will be prohibited.

No options has yet been approved but other alternatives or a combination of these are also possible.

President Vladimir Putin previously announced he would respond to what he called the European Union’s embargo on domestic oil supplies and the introduction of a price cap on Russian crude.