Putin warns of serious repercussions to put a ceiling on the price of Russian oil

The Russian President, Vladimir Putin, is discussing with the Iraqi Prime Minister, Muhammad Shia’ al-Sudani, the attempt of a number of countries to set a ceiling for the price of Russian oil, and warns of the consequences.

  • Russian President Vladimir Putin (archive)
    Russian President Vladimir Putin (archive)

Russian President Vladimir Putin discussed today, Thursday, with the Iraqi Prime Minister, Muhammad Shia’ al-Sudani, the attempt of some Western countries to put a ceiling on the price of Russian oil, indicating that these practices may lead to dire consequences for global markets.

Putin said, during a phone call with Al-Sudani, according to a Kremlin statement, that “the attempt of a number of Western countries to set limits on the price of Russian oil contradicts the principles of market relations, and is likely to lead to serious consequences for global energy markets.”

The statement added that the two sides gave a positive assessment of the joint work with the participation of Russia and Iraq within the framework of “OPEC +”, which makes it possible to ensure the stability of the global oil market.

The goal is to reach a maximum price for Russian fuel, which can be set before the entry into force of new European sanctions, as of December 5th.

Today, the energy ministers of the European Union failed, during their meeting in Brussels, to agree on a decision to limit the rise in gas prices by imposing a price ceiling, according to what was announced by the Hungarian Foreign Minister, Peter Siarto.

Siarto said, in a press conference after the meeting, “We started negotiations today on setting a ceiling for gas prices, and I can say that this is a bad idea, and threatens energy security in Europe.”

The adoption of an oil price cap requires the agreement of all EU member states. According to Bloomberg, the European Union’s negotiations on setting a ceiling for Russian oil prices have reached a dead end.

Also read: “Novatek”: Imposing a ceiling on gas prices in the European Union will exacerbate the energy crisis

And a senior US Treasury official said, on Wednesday, that it is likely that the United States and its allies, after setting a ceiling on the price of Russian oil, will adjust the price of oil several times annually, not monthly.

Last September, the finance ministers of the G7 countries (Britain, Germany, Italy, Canada, the United States, France and Japan) sought to impose restrictions on Russian oil prices, as part of the expansion of sanctions.

Also read: French “Total”: Putting a ceiling on the price of Russian oil is a bad idea

In early October, the European Union presented the eighth package of sanctions against Russia, which includes a legislative basis for setting a ceiling for the price of Russian oil by sea to third countries.

The West escalated the pressure of sanctions against Russia, but these sanctions had severe repercussions on the countries that imposed them, as they led to an increase in the prices of electricity, fuel and foodstuffs in Europe and the United States.

The article is in Arabic

Tags: Putin warns repercussions put ceiling price Russian oil

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