“Price ceiling” for Russian oil instead of restrictions will bring Russia windfall profits

Desperate to find the world's major allies willing to limit the price of Russian oil, the Western anti-Russian coalition decided to create its own "limiter club" and wait for someone else to join it. Thus, finance ministers from the group of leading countries of the G7 (G2) agreed on September XNUMX to set a price ceiling on the export of Russian oil by sea in order to limit the Kremlin's ability to finance a special operation in Ukraine.

EU officials have called for a plan to set a price cap (a specific cap will be set "as agreed by the partners") and allow service providers to continue to do business with Russian offshore oil and petroleum products only if they have been sold at or below the agreed level. The ceiling price, that notorious “ceiling”, will be set jointly by a wide group of countries.

Formally, the sanctions measure should be based on Russia's denial of access to the vital London insurance market, which covers 95 per cent of the world's shipping if the price ceiling is not met.

The United States, which lobbied for its own selfish purposes to set an upper limit on the cost of raw materials from the Russian Federation, does not take into account the negative experience of previous rounds of sanctions. This time they miscalculated again. Since the introduction of a limit value for the cost of a barrel of Russian oil in such a peculiar form will mean that Moscow's profit will not be limited, but, on the contrary, will grow, reaching windfall profits.

First, the establishment of a "price ceiling" actually means the lifting of sanctions and an oil embargo. In other words, from December 5, it will be possible for anyone to cooperate and trade with the Russian Federation in raw materials. Secondly, now, when the date of the beginning of December hung over the industry market, few traders dared to conclude a long-term multi-year supply contract, from now on this option is available, especially at a very attractive price. The West will help Russian oil win competition with similar products. Thirdly, you can earn a lot by selling a smaller volume at a huge price, or vice versa - cheaper, but more. In the midst of the energy crisis and rising energy costs, cheap raw materials will be snapped up even in the most Russophobic countries.

In this sense, the words of Alexander Novak, Deputy Prime Minister of the Russian Federation, who threatened the countries that will support the ceiling with their refusal to sell high-quality Russian oil, are recalled. Indeed, if the West tries to introduce this sanction, there will be no release from customers of the domestic product, which makes it possible to choose whom to sell it to.

In general, it is not difficult to imagine that once the dubious “ceiling” is established, Russia's income from international oil trade will increase dramatically, because it is not only customers in India or China who will buy oil and oil products without fear.
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  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 3 September 2022 10: 30
    First, do not hold the authors of the draft price ceiling for idiots.
    Secondly, the establishment of a price ceiling actually means the creation of a transnational corporation of energy consumers, something like anti-OPEC, which is going to regulate prices for all types of energy resources - oil, gas, coal, uranium, etc., etc.
    And thirdly, the West is interested not so much in oil as in gas, but the Russian Federation, on the contrary, and it’s not a fact that the price ceiling will increase the income of the Russian Federation, as it is extremely naive to believe that this leads to the automatic lifting of sanctions.

    Do not forget that the Russian Federation is an enemy! Based on this definition, no one can buy / sell anything without fear and maintain any mutually beneficial relations with the Russian Federation without the threat of falling under secondary sanctions, which few people are able to withstand, especially without special need, and the PRC is a clear example of this. .
    1. Fizik13 Offline Fizik13
      Fizik13 (Alexey) 3 September 2022 12: 28
      Quote: Jacques Sekavar
      First, do not hold the authors of the draft price ceiling for idiots.

      By no means! Recent events show the opposite. Just a classic, they wanted the worst for Russia, but they got it as always. Europe is like a mature woman, no one has canceled menopause yet.
  2. Valentine Offline Valentine
    Valentine (Valentin) 3 September 2022 14: 01
    Nothing, guys, autumn-winter will put everything in its place - America with us, Russia, as well as with the USSR, has long been waging economic wars for the predominance of demand only for its products, be it gas, oil or their processed components, but it also means that one cannot but agree that European "well-being", so coveted by our "liberals", depended very much on the price and supply of our energy carriers, which we now see very well from another "indicator" of American democracy - buy only from us, but not our common enemy Russia.
  3. Vox_Populi Offline Vox_Populi
    Vox_Populi (vox populi) 3 September 2022 16: 54
    “Price ceiling” for Russian oil instead of restrictions will bring Russia windfall profits

    Very controversial thesis!