The USA needs Russian “black gold” presence on world markets, stated US Assistant Secretary of State Victoria Nuland. Meanwhile, the United States posted record US oil exports this year – up to 12 million barrels per day. Russian Deputy Prime Minister Alexander Novak, in response to a possible “ceiling” prices, said earlier that Russia would not supply oil to world markets at a loss. Nabiullina, the head of the Central Bank, warned of an increase in the cost of energy resources if the G7 imposes restrictions.
Too expensive for Washington
“We need to see the presence of Russian oil on the world market, otherwise the shortage of oil will lead to a new rise in prices,” said Nuland.
Since February 21, when Russian President Vladimir Putin recognized the independence of the Donetsk and Lugansk People’s Republics, oil has been trading at prices ranging from $95 to $125. The previous five years the price was much lower. From 2017 to early 2022, oil traded in the range of $51-79 per barrel.
Nuland added that, according to Washington and its allies, the ceiling price for Russian oil should be such that it will limit the profits from the sale of “black gold” to Moscow, but remain motivated to continue supplying this resource to world markets. .
July 21, US Deputy Secretary of the Treasury Wally Adeyemo declarationHe said that an agreement could be reached on the price limit of Russian oil by December 2022. According to him, the EU expects to block insurance of Russian oil tankers by December.
“Our goal is to make sure we’re in a position to add a price cap to this,” said the division vice president.
July 6 Bloomberg knowledgeableThe United States, together with its allies, is discussing the “ceiling” of the Russian “black gold” price of $40-60. At the end of June, the agency reported that the G7 countries (Great Britain, Germany, Italy, USA, France, Japan, Canada) were discussing imposing a “ceiling” on the price of oil from the Russian Federation. The measure was supposed to work by imposing restrictions on insurance and shipping.
Moscow does not work at the expense
July 22, Chairman of the Central Bank of the Russian Federation Elvira Nabiullina warnedHe said that a possible ceiling price on Russia’s oil exports would lead to an increase in world prices.
“On geopolitics and a possible price ceiling for oil exports. “If this comes out one way or another, I think it will lead to an increase in world prices,” said Nabiullina.
Former Deputy Prime Minister of Russia Alexander Novak declarationHe said Moscow would not supply oil to world markets at a loss. According to him, if the G7 initiative is implemented and prices remain below the cost of oil production, Moscow will not be able to feed the world markets.
Russian Security Council Vice-President Dmitry Medvedev on Telegram in early July commented Japanese Prime Minister Fumio Kishida and the G7’s plans to impose price restrictions. He noted that the shortage of Russian fuel, on the contrary, will cause a multiple jump in market prices.
“There will be significantly less oil on the market and its price will be much higher. Moreover, it is higher than the estimated astronomical price of $ 300-400. Compare with gas price dynamics <…> But Japan will have neither oil nor gas from Russia. As well as participation in the Sakhalin-2 LNG project, ”Medvedev wrote.
On June 30, Putin signed a decree on special economic measures in the fuel and energy sector in connection with the actions of unfriendly states. Document instructing to change the operator of the Sakhalin-2 oil and gas project to a new legal entity that will receive the rights and obligations of Sakhalin Energy Investment Company Ltd. The property of the company will be transferred to Russian ownership with simultaneous transfer for free use to the new Sakhalin-2 operator.
Sakhalin-2 is a major oil and gas project. Its operator is Sakhalin Energy. The controlling stake – 50% plus one share – is owned by Gazprom. Japanese Mitsui owns 12.5%, Mitsubishi – 10%. Most of the LNG produced under the project is shipped to Japan.