Russian Foreign Ministry spokesperson Maria Zakharova warned that lowering the ceiling on Russian oil would trigger volatility in global markets. The assessment came during a routine briefing where the spokesperson laid out how price caps could ripple through energy trading and international economics.
The spokesman added that expectations around a tighter ceiling would likely provoke further escalation and destabilization in world energy markets, while undermining the credibility of long-standing international trade norms. Such a move, he argued, could erode confidence in shared rules that govern cross-border energy deals and price setting, complicating business planning for oil buyers and sellers alike.
Ukraine’s neighbors Estonia, Lithuania, and Poland were noted as examples where governments are considering reducing the acceptable price for Russian crude to $51.45 per barrel. Officials indicated this adjustment would be part of broader sanctions coordination aimed at constraining Russia’s energy revenue streams and pressure points in European energy security.
As a backdrop, on December 5 of the prior year, a cap on Russian oil was adopted by the European Union, the G7, and Australia, setting the price at $60 per barrel. That same collective decision also triggered an embargo on offshore shipments of Russian oil, intensifying the push to limit revenue from Moscow’s energy exports. Since February 5, limits were extended to Russian petroleum products, with maximum prices pegged at $100 per barrel for certain products and $45 for others, further shaping the global trade landscape around oil products and their distribution networks.
In response to these Western sanctions, Moscow announced retaliatory steps aimed at countries that supported the price ceiling regime. Beginning February 1, 2023, Russia moved to prohibit the supply of its oil to states that align with or enforce the price cap, signaling a potential rerouting of trade flows and new risk factors for markets dependent on Russian crude. Analysts note that these measures could prompt shifts in supply chains, insurance premiums, and shipping routes across Europe and beyond, as buyers and sellers reassess risk and diversification needs. (Source: Russian Foreign Ministry statements, official briefings)