Russia Confident Demand for Its Oil to Remain Despite Price Cap

By Staff, Agencies

Russia has no doubt that its oil will continue to be in demand on world markets even after the introduction of the price cap, the Russian Embassy in the United States said.

"The result of such steps will be a widespread increase in uncertainty and higher costs for consumers of raw materials. Moreover, no country is now immune to the imposition of a ‘ceiling’ on its export products for political reasons," the embassy said on Friday, adding that regardless of the "current ‘flirting’ with a dangerous and illegitimate tool, we are confident that our oil will continue to be in demand."

The embassy emphasized that, by implementing such steps, Western countries are trying to reshape the basic principles of the functioning of free markets, at the same time trying to "hush up the fact that the current imbalances in energy are the result of their own rash actions."

The Group of Seven [G7] nations and Australia issued a statement on Friday, saying they had reached an agreement on the maximum price cap of Russian crude oil to be set at $60 per barrel.

The price cap will enter into force on December 5 or very soon thereafter, according to the joint statement.

Meanwhile, the price cap on Russian petroleum products developed by the US-led international coalition will take effect on February 5, 2023.