The Kremlin said on Sept. 2 that Russia would stop selling oil to countries that impose price caps on Russia’s energy resources—caps that Moscow said would lead to significant destabilization of the global oil market.
“Companies that impose a price cap will not be among the recipients of Russian oil,” Kremlin spokesman Dmitry Peskov told reporters in a conference call, endorsing comments made on Sept. 1 by Deputy Prime Minister Alexander Novak.
“We simply will not cooperate with them on non-market principles,” Peskov said.
Group of Seven (G7) finance ministers were due to meet virtually on Sept. 2 and were expected to firm up plans to impose a price cap on Russian oil purchases with the aim of reducing the revenues flowing to Moscow.
The EU earlier this year imposed a partial ban on Russian oil purchases, which Brussels says will halt 90% of Russia's exports to the 27-member bloc when it fully comes into force.
European Commission head Ursula von der Leyen said on Sept. 2 it was time for the EU to consider a similar price cap on Russian gas purchases.
Peskov said it was European citizens who were paying the price for such moves, imposed in response to Moscow’s military campaign in Ukraine.
“Energy markets are at fever pitch. This is mainly in Europe, where anti-Russian measures have led to a situation where Europe is buying liquefied natural gas (LNG) from the United States for a lot of money—unjustified money. U.S. companies are getting richer and European taxpayers are getting poorer,” Peskov said.
Russia was studying how a price ceiling on its oil exports might affect its economy, Peskov said.
“One thing can be said with confidence: such a move will lead to a significant destabilization of the oil markets.”
Before Russia sent tens of thousands of troops into Ukraine in February, Europe was the destination for almost half of Russia's crude and petroleum product exports, according to the International Energy Agency.
The bloc imported 2.2 million bbl/d of crude, 1.2 million bbl/d of refined products and 500,000 bbl/d of diesel in 2021, with Germany, Poland and the Netherlands the largest customers.
Recommended Reading
Utica Oil E&P Infinity Natural Resources’ IPO Gains 7 More Bankers
2024-11-27 - Infinity Natural Resources’ IPO is expected to provide a first-look at the public market’s valuation of the Utica oil play.
Post Oak Backs New Permian Team, But PE Faces Uphill Fundraising Battle
2024-10-11 - As private equity begins the process of recycling inventory, likely to be divested from large-scale mergers, executives acknowledged that raising funds has become increasingly difficult.
Souki’s Saga: How Tellurian Escaped Ruin with ‘The Pause,’ $1.2B Exit
2024-09-11 - President Biden’s LNG pause in January suddenly made Tellurian Inc.’s LNG export permit more valuable. The company’s July sale marked the end of an eight-year saga—particularly the last 16 months, starting with when its co-founder lost his stock, ranch and yacht in a foreclosure.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
BP Profit Falls On Weak Oil Prices, May Slow Share Buybacks
2024-10-30 - Despite a drop in profit due to weak oil prices, BP reported strong results from its U.S. shale segment and new momentum in the Gulf of Mexico.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.