The Kremlin has already announced that it will only sell its oil at market price, otherwise it is ready to cut oil production. At the same time, China and India, the biggest buyers of Russian oil, have yet to commit to complying with the oil ceiling.
Russia, the second largest crude oil producer among OPEC+ members, will lose its main oil market after the aggressor country was banned from shipping “black gold” to European Union countries on December 5th. Al Jazeera writes about it.
According to the publication, in October 2022, that is, two months before the embargo, Russia produced more than 9.7 million barrels of oil per day, second only to Saudi Arabia in this indicator. Also, according to the International Energy Agency (IEA), Russia is the world’s largest exporter of oil and petroleum products.
However, after the introduction of the embargo and oil price ceiling, in which the G-7 countries, the European Union and Australia pledged to buy Russian oil at more than $60 per barrel. Russia risks losing not only its sales market, but also part of its income. It should be noted that the Kremlin financed the war in Ukraine from the sale of oil and spent the earned money to increase the potential of its army.
The Kremlin has already announced that it will not comply with the restrictions and is even ready to cut oil production. And the largest oil buyers in Russia – China and India – have not committed to complying with the oil ceiling.
Previously Focus He wrote that Ukrainian President Volodymyr Zelensky expressed his dissatisfaction with the new ceiling of oil prices from the Russian Federation at $60 per barrel. According to the Ukrainian leader, the Russian Federation can earn about $100 billion a year from oil sales.
Recall, on October 6, the European Union implemented the 8th package of sanctions against Russia. He laid the foundations for limiting the prices of Russian oil. The EU believes that the sanctions “melt down” the Russian Federation’s ability to finance a full-scale war in Ukraine.
Source: Focus
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