Russia may stop oil supplies to Europe-Budrigantrade
Russia may stop oil supplies to Europe-Budrigantrade
2022.11.26 01:33
Russia may stop oil supplies to Europe-Budrigantrade
Budrigantrade.com – According to a person with knowledge of the situation, the Kremlin is working on drafting a presidential decree that will forbid Russian oil traders and companies from selling it to anyone who participates in a price cap.
According to the person, the decree will prohibit dealings with countries and companies that join the price-cap mechanism. The person did not provide an exact definition of participation in such a mechanism.
According to the person, who requested anonymity due to the fact that the matter is not yet public, it would effectively prohibit any reference to a price cap in contracts for Russian crude oil or products, and it would also prohibit loadings destined for any countries that adopt the restrictions.
The European Union has had difficulty settling on a price cap’s level of rigor.On Friday, diplomacy called a halt to discussions regarding a proposal to set a limit at approximately $65 per barrel, which is significantly more than the price of Russia’s primary export crude at the present time. The talks were moved to Monday because disagreements over the price level persisted.
It is unclear how much trade would be affected by a price cap or Kremlin decree.This is because the official supporters of the measure have already decided not to purchase oil from Russia.In reality, the policy is aimed at other major consumers, like India, which won’t be able to use western insurance or other shipping services if they pay more for Russian crude than the cap.
Numerous officials, including Russian President Vladimir Putin, have stated that the country will not supply energy to those who join a price cap.Deputy Prime Minister Alexander Novak stated earlier this week that the nation will instead reduce production or redirect its oil supply to “market-oriented partners.”The cap has not been agreed upon by India, Turkey, or other significant buyers. At this stage it appears as though they would experience no difficulty proceeding to purchase Russian oil, since the most recent proposition has the cap such a long ways above current market costs.
