The head of TotalEnergies called the ceiling on Russian oil prices a bad idea

MOSCOW, 5 Oct – PRIME. The introduction of a cap on Russian oil prices is a bad idea, Patrick Pouyanne, head of the French energy company TotalEnergies, said at the Energy Intelligence Forum in London.

“I think it’s actually a bad idea,” Pouyanne was quoted by Bloomberg as answering a question about his thoughts on Russia’s oil price ceiling. He added that the market “is already doing its job and Russian oil is already available at a big discount.”

The representative of the Czech Republic to the EU, Edita Hrda, said on Wednesday that the permanent representatives of the EU countries have agreed on new sanctions against Russia, and the technical procedure for finalizing has been launched. Sanctions, according to the European Commission’s proposal published earlier, will include a legislative framework for setting a ceiling on prices for Russian oil.

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 European Union, 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 discounts on its oil.

Earlier Wednesday, Russian Deputy Prime Minister Alexander Novak said that the idea of ​​setting a price ceiling for Russian oil violates all market mechanisms, this tool could have a detrimental effect on the global oil industry, causing underinvestment and rising prices.

The West stepped up sanctions pressure on Russia over the situation in Ukraine, which led to higher prices for electricity, fuel and food in Europe and the United States. Earlier, Russian President Vladimir Putin, commenting on the West’s idea to limit prices for Russian energy resources, said that Russia would not supply anything abroad if this would be contrary to its own interests.