Capping Russian oil prices would result in grave consequences

Moscow: Russian President Vladimir Putin has warned that attempting to cap Russian fuel prices would seriously affect the international fuel market. G7 and the European Union are moving to restrict the prices of crude oil exported from Russia. According to Western sources, a proposal has been made to keep the price of Russian oil at the level of $65 to $70 per barrel.

After the start of the Russia-Ukraine conflict, the West imposed massive sanctions to cripple the Russian economy and oil sector. Although it has affected Russia to some extent, efforts to disrupt the fuel sector and economy have not met with much success. Many European countries, including the United States, the United Kingdom, have stopped directly importing Russian fuel. But many of these countries are buying Russian fuel in different ways.

Against this backdrop, the attempt to lower Russian fuel prices is noteworthy. Currently, the price of crude oil in the international market is above 85 dollars per barrel. After the Ukraine conflict, Russia started discounting its crude oil prices. Therefore, Russia’s ‘Ural Oil’ is available in the market at $60 to $65 per barrel. Many countries in financial trouble have continued to buy it. Therefore, Russia still receives a large amount of revenue from the fuel sector.

The Western countries intend to hurt the income of Russia and for this purpose, they have prepared to lower the price of Russian oil. But these efforts of the West will not be successful. On the contrary, it will have serious consequences on the global fuel market, warned Russian President Putin. Putin also warned that Russia would not supply oil to countries that would implement limits on fuel prices. OPEC, the leading organization of oil-producing countries, has also expressed strong displeasure at the proposal to impose restrictions on Russian fuel prices.