Just Cut Production, Says Putin In Response To G7 Limiting Russian Oil P...

Just Cut Production, Says Putin In Response To G7 Limiting Russian Oil Prices

December 8, 2022.

Russian President Vladimir Putin finally spoke after the G7, European Union and Australia agreed to limit the price of Russian seaborne oil.

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

The limit on Russian oil prices was taken to suppress Moscow's revenue so that its war machine in Ukraine would stop.

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

"Regarding 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.

"We will think, perhaps, even about the possibility, if necessary, of reducing production," Putin continued.

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

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

“We are thinking about this, there is no solution yet. And concrete steps will be set forth in a presidential decree which will be released in the next few days," Putin said.

Selling 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 corresponds to what Russian oil is selling for.

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

Putin warned that Western attempts to limit prices would only lead to the collapse of the global oil industry and then catastrophic price increases.

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

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

Source: www.kompas.com

Subscribe to receive free email updates: