Calls in the EU to lower the price ceiling for Russian oil were called a PR stunt

There is no economic point in adjusting the ceiling on the cost of oil from the Russian Federation, which currently stands at $60 per barrel. The calls of a number of EU states to reduce it are a PR stunt. This was stated RIA News director of the scientific center “Anselm” Maxim Kanishchev.

Earlier in March, Assistant Treasury Secretary Elizabeth Rosenberg said that the G7 states this month plan to revise the level of the ceiling on the cost of oil from Russia. Later, foreign media reported that Poland and Lithuania proposed to lower the limit from $60 to $51.45 per barrel of fuel. At the same time, the G7 states, such as the United States, want to maintain the current price ceiling for Russian oil.

According to Maxim Kanishchev, disagreements over the price ceiling for oil from the Russian Federation show a split in the EU and its incompetence in economic matters.

“Reminds me of a quartet from Krylov’s fable, but if in the fable the animals at least wanted to play together, then in Europe they just sit side by side, swear and imitate the game,” – said the specialist.

He added that according to the rules for setting the price ceiling, the price level should be set no higher than 95 percent of the market price. At the moment, the ceiling is actually higher than the selling price of oil. Because of this, it makes no economic sense to adjust this restriction.

“There is simply no need to hold meetings, draw up documents (there is no point – Note. REN TV) – it’s a waste of time and resources.” – emphasized the expert.

At the same time, Kanishchev is confident that Western calls to lower the ceiling on the cost of oil from Russia are nothing more than just a PR stunt.

“However, a number of countries in their struggle have long untied economic feasibility and realities, so their calls to lower the ceiling – PR move so that they are not forgotten”, concluded the expert.

In early December last year, the G7 countries and Australia imposed a price ceiling on Russian oil. Black gold will trade at $60 per barrel. This measure does not apply only to fuel supplies via the Druzhba oil pipeline. Moscow has refused to supply oil to countries that will join this measure.

In turn, on December 27, in response, Vladimir Putin signed a decree prohibiting the supply of Russian oil to Western countries that stipulate a price ceiling in their contracts. The decree took effect on February 1, 2023.

In January, the Financial Times noted that the introduction by the West of a price ceiling for Russian oil products would hit the economies of the EU countries more than the oil price ceiling adopted in December 2022.

In early February, the European Union expanded sanctions by extending the price ceiling for petroleum products. Hungarian experts noted that such a step would only exacerbate problems in Europe’s energy security.