The Kremlin said that the G7 trying to get cheap Russian crude with an oil price cap would get a real shock. It called it vain sanctions, which failed because there will be oil buyers despite its attempt cartel-like action.
Kremlin To Ignore Oil Price Cap
The Group of Seven last Friday decided that the limit price of Russian seaborne oil will be $60 a barrel. Its purpose is to limit Moscow's earnings used to continue its systemic military campaign in Ukraine, reported Alarabiya.
Russian President Vladimir Putin and high-ranking Kremlin officials warned Washington and its allies that they would be starved of oil if they continued the price limit.
Russia stated that the West attempting to dictate to the owners of the resources a price of their preference is rewriting the free market principle for their convenience; also stress there will be buyers other than them even with their restrictive measures, noted Bangkok Post.
In an attempt to get cheap oil, the western nations are dooming themselves to more adversity, with higher costs for materials consumers.
Moscow called the actions deadly and against set laws, but added to be warned their energy would be hit hard like no crude oil sold to them. The Kremlin said dictating an oil price cap convenient for its product is unacceptable.
This Group of Seven will allow the importation of Russian oil but activate questionable measures like preventing shipping and no insurance for transporting oil globally, but should be the price dictated by the US-backed allies.
Russian crude oil sanctions set to start will destabilize an already insecure oil market for the worse, per CNBC.
Last September, the Group of Seven called for a limited price on Russian oil. From then on, it's been a terrible tussle as disagreements wracked the bloc. During this period, the EU's energy chief, Kadri Simson, spoke to an outlet hoping that China and India would join the initiative, citing NBC Connecticut.
New Delhi and Beijing were unperturbed by the sanctions on Russian energy, which they ignored, and instead got record amounts of oil from Russia with good discounts compared to the west.
Price Cap Could Fail if G7 Gets No Crude
According to Jacob Kirkegaard, connected to the Peterson Institute for International Economics, without China or Russia, it would not work. He added they are not interested and have their agenda, stating why they should agree to a US-pushed policy.
They get cheaper oil from Russia, which is crucial to them, and another point is Ukraine is nothing to them. At the start, the assumptions were so flawed.
Based on a comment by India's petroleum minister Shri Hardeep S Puri, in September, they have a moral duty to India's citizens and said the Biden administration has no right to dictate if they buy Russian oil. Stressed they won't be pressured by the US or any of its allies.
Many now see what the sanctions will cost those who impose them; one German official thinks the energy sanctions are too late and weak. Even acknowledge that Moscow outsmarted the west.
A reaction from the Kremlin on a G7 imposed oil price cap was they would regret it, especially if no crude were sold to them.
