Russia reacts to ceiling price: We will sell to those who buy under market conditions

Russian Deputy Prime Minister Aleksandr Novak said, “Even if we are forced to reduce our oil production, we will only sell oil and petroleum products to countries that work with us on market conditions.” Russian Deputy Prime Minister Aleksandr Novak stated that they will not sell oil and petroleum products to countries that implement price ceilings, saying, “We are working on mechanisms that will prohibit the use of price ceiling tools.” In a statement to the Russian state channel Rossiya-24, Novak evaluated the agreement of the European Union (EU) countries to implement a price ceiling of $60 per barrel on oil transported by sea from Russia. Emphasizing that Russia will continue to sell oil on market conditions, Novak said, “Even if we are forced to reduce our oil production, we will only sell oil and petroleum products to countries that work with us on market conditions.” Explaining that the price ceiling application violates market rules, Novak said, “The Russian government has emphasized many times that this decision is an instrument that is against the market, inefficient and contrary to all rules of the World Trade Organization (WTO).” “We think it will lead to an energy shortage” Novak, pointing out that they are preparing to ban the use of tools related to the implementation of price ceilings, said, “We are working on mechanisms that will ban the use of price ceiling tools. We think that the implementation of price ceilings could lead to instability, a scarcity of energy resources and a decrease in investment.” EU countries agreed on December 2 to implement a $60 per barrel ceiling price on oil transported by sea from Russia. The G7 and EU countries will also impose an import ban on oil transported by sea from Russia starting from December 5.