Russian Oil Price Cap Reconfigures Fundamental Free Market Principles

According to Russian diplomats, Washington is trying to cover up  that the current imbalance in the world oil market is the result of its own actions. 

The price cap on Russian oil The oil imported by the United States and its partners means in practice that the basic principles of the free market are being redesigned, the Russian embassy in the United States said in a statement. about the agreement with its partners on the notorious "cap price" for Russian oil," the embassy said.

"The strategists in Washington, hiding behind lofty slogans about ensuring energy security for developing countries, maintain a wall of silence that the  current imbalances in energy markets are the result of their ill-considered actions. 

First, the imposition of sanctions against Russia and bans on energy imports from our country "With a tenacity worthy of  better application, the collective West is impetuously trying to solve the problems it has created itself," the document continues.

According to Russian diplomats, "moves like these will inevitably lead to greater uncertainty and  higher costs for consumers of commodities." Furthermore, no country is henceforth immune to the imposition of all kinds of “restrictions” on exports imposed for political reasons,” they added. 

Regardless of the current flirtation with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand," the statement concluded. 

Members of the Group of Seven (G7) and Australia said in a joint statement on Saturday that they had agreed to  cap  Russian oil at  $60 a barrel. The decision will come into effect "on  December 5, 2022 or very soon thereafter. 

A similar decision regarding Russian oil products will come into effect on February 5, 2023. The maximum prices will be announced separately later. Russian President Vladimir Putin said on October 12 that Moscow does not care for the prosperity and prosperity of another Person will export their energy resources to those who impose price caps on them.He called the practice of price caps “cunning tricks” and “blatant blackmail.

Furthermore, in his speech at  Russian Energy Week, President warned that oil is tight with the risk of price capping  in other sectors, which is detrimental to the global market economy and Wellbeing for billions of people.