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News > Russia

Oil Price Cap Not To Disrupt Russia’s Energy Revenues - Putin

  • Russian President Vladimir Putin. Dec. 9, 2022.

    Russian President Vladimir Putin. Dec. 9, 2022. | Photo: Twitter/@AlbertoValdyev

Published 9 December 2022

The price cap imposed by the West on Russian oil exports will have no negative impact on the country's revenues, Russian President Vladimir Putin said.

His comments came at a press conference in Bishkek, capital of Kyrgyzstan, where he attended a summit of the Eurasian Economic Union (EEU).

15 Oil Vessels Blocked Amid EU Sanctions on Russia

On the occasion, Putin said the 60 dollar per barrel cap on Russian seaborne oil agreed by the European Union (EU), the Group of Seven (G7) and Australia is equal to the prices at which Russia currently sells its crude oil.

In this sense, he said the country will not suffer "losses under any circumstances," while, on the contrary, the measure would be detrimental to those who impose it.

Under the restriction in effect since last December 5, Western companies are prevented from providing insurance and other services to Russian oil shipments unless the cargo is purchased at or below the cap. 

According to the Russian President, a presidential order will be issued in the next few days with the actions to be taken in view of the recent Western restriction. 

Putin reiterated that Russia will not sell its crude oil to countries that adhere to any price cap, the inevitable effect of which will be a reduction of investments in the oil sector and a rise in world prices. 

The world's largest energy exporter is considering cutting oil production if necessary, Putin announced, noting that the issue is still under discussion and no decision has been made.

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