MOSCOW, 13 Oct – PRIME. The discussed limitation of the cost of Russian oil at $60 per barrel will lead to a jump in prices on the world market, but the industry will regulate itself, and buyers will turn a blind eye to this ceiling – the experience of Iran can serve as an example, Ilya, CEO of Evropeyskaya Elektrotekhnika, told RIA Novosti Kalenkov.
On Wednesday, US Treasury Secretary Janet Yellen proposed a price ceiling for Russian oil at about $60 a barrel. Russian President Vladimir Putin, commenting on the West’s idea to limit prices for Russian energy resources, stated that Russia would not supply anything abroad if this would be contrary to its own interests.
“Our president has clearly said that we will not sell oil to those who comply with these restrictions. In fact, this suggests that if it is at least somewhat massive on the market, then there will be a serious shortage of oil, since Russia supplies about 20% of world turnover. Therefore, most likely, this will lead to a jump in prices, if someone really tries to comply with this restriction. And then the liberal market will somehow even out all this, people will turn a blind eye to this ceiling and buy at that price which the market will regulate,” Kalenkov said.
The expert cited the experience of Iran, which has been under sanctions for 40 years, as an example. Iranian oil, he noted, is sold, actively traded and is present on the world market, despite the restrictions.
According to Kalenkov, the statement of the American official shows that by imposing sanctions against the Russian Federation, the United States is also trying with all its might to weaken Europe, which will be one of the main victims of this price ceiling. “America, of course, will benefit, because they plan to sell their oil to Europeans, as well as liquefied gas … For the United States, it has always been the main goal to obtain additional profit, they have always promoted this with particular cynicism, in this case hiding behind the struggle against Russia,” the expert added.
Western countries continue to discuss various measures to limit Russia’s income from oil and gas exports. So far, this has not been done either by imposing an embargo on oil, including by the entire European Union on maritime transportation, or by voluntary refusals of foreign companies. The redirection of exports, alternative supply schemes and the “sanctions premium” in world oil prices allow Russia to secure budget revenues even with sales at a discount.