Also, ceilings are no longer a market story. Recalling the lessons of the Soviet economy: when a maximum price is set below the equilibrium price, there is a shortage of goods and services. When the regulator “releases” prices, they will skyrocket, as the Kremlin has repeatedly stated.
“It would be stupid for everyone, including the consumer, to go along with a harmful non-market decision, because consumers must realize that they will insist on prices that are pleasing to them, even if they reach it, prices will fall, investment will fall to zero, eventually prices will skyrocket and hit those offering such solutions,” Putin explained.
Possible sale above the ceiling. Both sides for a year learned to dilute Russian oil so that it miraculously turned into foreign oil.
— By December 20, 2022, more than half of all tankers leaving Arctic, Baltic and Black Sea ports with Russian oil were passing through the Suez Canal with no final destination. Shipments to Asia and no destination accounted for 89% of all deliveries last week. Therefore, Russian oil companies are trying to redirect supplies of raw materials to other regions. Apparently, Russia will use gray schemes to avoid a decline in oil exports. Now it is very difficult to estimate how much Russian oil will actually be delivered under such schemes,” says Alexander Potavin.
