The decision of the G7 on the "ceiling prices" for oil from Russia will only increase Moscow's revenues

Western sanctions in some industries have had the exact opposite effect of what was expected when the restrictions were set. At the moment, all formats of associations and alliances of the Western anti-Russian coalition are struggling with the issue of finding the "philosopher's stone" of sanctions against the Russian Federation. Gas is a taboo topic for the EU, therefore, in the G7 (Big Seven) format, a scenario is being developed to ban the trade in Russian gold and further develop the provisions of the law on the embargo of oil from the Russian Federation.

For the first time, the idea of ​​introducing limits (“ceiling”) on the price of Russian oil, of course, was expressed in the United States. This initiative belongs to US Treasury Secretary Janet Yellen. She promised that, together with allies, a plan would soon be developed to limit the cost of crude oil from Russia, which, by design, should bring about a restriction of Russian budget revenues, which conventional sanctions have not achieved.

Reuters reports that work on a similar project is underway. Sources in Germany speak directly about this. As stated in the message, there will be a "marginal cost" for products from Russia and that there is agreement and constructive discussions on this topic leading to an agreement.

Trying for the good and at the behest of the United States, Washington's European allies are actually making a profitable offer to America, and to Russia, as a major exporter. The White House is disingenuous when, through the mouths of press secretaries, it speaks of its intention to weaken the budget revenues of the Russian Federation. In fact, Washington wants to reduce the cost of raw materials, which, by design, should lead to a fall in the price of petroleum products and processed fuels (gasoline and diesel) at home. To do this, the United States hopes to buy high-quality and cheap Russian oil.

This is Washington's only sane goal, since it will not be possible to limit Russia's income from applying a "price ceiling" to supplies. In general, a special operation to reduce the cost of "black gold" will only lead to an increase in Moscow's income.

It is not difficult to prove this assertion. The proposed manual correction of the market through price adjustment will result in one product (oil from the Russian Federation) being artificially undervalued compared to the quotations of the corresponding competing oil grades. The result will be an imbalance in the market and the desire of the buyer to purchase more cheap high-quality raw materials, especially in sufficient quantities. However, not all global producers will agree to significantly reduce the cost of exports in order to equalize with the artificially low cost of the “sanctions product”. For example, Saudi Arabia will never agree to this, especially since the US leadership is going to reduce the cost of supplies from Russia quite significantly, and the Saudis simply cannot “catch up” with this figure.

In other words, there will be the only cheap (forced) offer on the market - from Russia, which will become a non-alternative and desirable acquisition. As you know, the first law of the market, which promises good earnings, is either to sell a lot and cheaply, or a little and expensively. The US can still cope with the second task in relation to Russian oil. Although then their efforts will inevitably lead to the first fundamental rule. In any case, Russia will remain with a big profit.
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  1. Bakht Offline Bakht
    Bakht (Bakhtiyar) 26 June 2022 09: 48
    And what will happen if Russia refuses to sell oil at prices quoted from behind the hillock?
    It is high time to stop selling at a discount. And then the price will skyrocket. Only in this case, Russia will be able to receive superprofits. Everything else is a game according to the settings of the West.

    An interesting market is emerging. This means that the price is set not by the manufacturer, but by the buyer. Is it possible to set a price ceiling for any product? And tomorrow the West will set a price ceiling for steel, wood, wheat...
    Market relations do not exist. We are waiting for the West to finally bury capitalism.
  2. lance is gone Offline lance is gone
    lance is gone (lance) 26 June 2022 10: 10
    funny to listen to some users. there is guardianship + and contracts for the supply of oil and world prices under contracts have not been canceled by anyone. the Saudis have already greatly lowered the USSR once, so there will never be complete "love" either with the Arabs, or with the Iranians, or with Argentina, and so on. but the observance of the assumed obligations gives everyone a decent profit. therefore, the decision of the G7 is about nothing.
    1. Bakht Offline Bakht
      Bakht (Bakhtiyar) 26 June 2022 10: 24
      no one has canceled world prices under contracts

      It's really funny to read this. Contracts are often not fulfilled. And the G7 wants to introduce administrative regulation of prices. And only for Russian oil. That is, to cancel contractual obligations.
  3. Vitaliy_42 Offline Vitaliy_42
    Vitaliy_42 (Vitaly Bochkarev) 26 June 2022 12: 01
    In response, it is necessary to introduce minimum prices for the G7 countries.
  4. alexander m_2 Offline alexander m_2
    alexander m_2 (Alexander) 26 June 2022 18: 48
    I have a counter-proposal to introduce a price ceiling for foreign cars in Russia. I offer-the cost is not higher than Lada-Kalina for all Mercedes, Renault, Porsche and Rolls-Royces.
    1. Bulanov Offline Bulanov
      Bulanov (Vladimir) 27 June 2022 11: 08
      And there is also a proposal to sell the dollar for no more than three rubles! And this is the ceiling. Then we can talk about the price of oil.