Putin relaxes in response to capping Russian oil prices: just cut production Page all

MOSCOW, KOMPAS.com – President Russia Vladimir Putin finally spoke after the G7, the European Union and Australia agreed to cap the price of Russian seaborne oil.

Last week, the G7, the European Union and Australia set the price of Russian seaborne oil at $60 a barrel.

Price restrictions Russian oil it was taken to suppress Moscow’s revenue so that its war machine in Ukraine would stop.

Read also: Russian oil prices blocked by the West, Moscow considers 3 answers

On Friday (9/12/2022), Putin said that Russia should only reduce its oil production and not sell it to any country that imposes price caps.

“As for our reaction, I have already said that we will not sell to countries that make such decisions,” Putin told reporters at a news conference in the Kyrgyz capital Bishkek.

“Perhaps we will also think about the possibility, if necessary, of reducing production,” Putin continued.

Currently, Russia is the world’s second largest exporter of oil after Saudi Arabia. Moscow is also the largest exporter of gas.

Read also: Does the Russian oil price restriction apply, what is the impact?

Putin said that Russia has production deals with other members of the OPEC+ group of oil producers, so such a drastic step is still possible.

“We are thinking about it, there is no solution yet. And concrete steps will be defined in a presidential decree that will be released in the coming days,” Putin said.

The sale of oil and gas to Europe has become one of Russia’s main sources of income.

Putin has dismissed Western efforts to squeeze Russian finances, saying a price cap of $60 is what Russian oil is sold for.

Read also: The G7 starts the application of the maximum limits on the price of Russian oil

The price of Russian Ural crude was around $53 a barrel on Friday, according to data Reuters.

Putin has warned that Western attempts to cap prices would only lead to the collapse of the global oil industry and thus catastrophic price hikes.

“This will lead to the collapse of the industry itself, as consumers will always insist that prices are lower. The industry is already underinvested, underfunded, and if we only listen to consumers, then this investment will be zero,” Putin said.

“All of this will, at some point, lead to catastrophic price spikes and the collapse of the global energy sector. This is a stupid, misunderstood and poorly thought out proposal,” Putin continued.

Read also: EU caps Russian oil prices, Moscow responds to refusal to export

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