The Kremlin said on Tuesday that it did not recognize the price cap imposed by Western countries on its oil exports, after the United States said the cap was working well.
A cap on Russian oil prices
This limitation, one of the measures taken by Western countries against Russia since the invasion of Ukraine, aims to reduce Moscow’s income. Washington is one of the main actors in the implementation of this measure.
Kremlin spokesman Dmitry Peskov told reporters, “We do not and will not recognize any limitations. We are working to ensure that this system does not harm our own interests. Russia, which accounts for about 10% of global oil supply, has already announced a production cut of 500,000 barrels per day in March.
A resilient Russian economy, but weakened by price restrictions
Despite Western sanctions, the Russian economy has remained stable. However, price controls complicate Moscow’s efforts to sell its oil globally.
U.S. officials argue that the price restraint is working because Russia’s Urals blend – a benchmark for Moscow’s exports – is selling at a significant discount to the international Brent marker. “I think the beauty of the process is that it’s working and Russian oil and products are trading below the price cap,” U.S. Energy Representative Amos Hochstein said on Monday.
The price restrictions imposed by Western countries could therefore have a negative impact on the sale of Russian oil, but Russia, which is the second largest oil exporter in the world, does not seem ready to bow to the demands of Western countries. Energy experts will be watching closely to see how this situation develops and how it may affect the global oil market.
