The head of the state company Rosneft, Igor Sechin, intends to convince Russian President Vladimir Putin to introduce a state monopoly on oil exports. Sechin proposes to carry out all sales of Russian oil to foreign markets exclusively through the oil trader of the state-owned company. The Moscow Times writes about this, citing sources in the oil industry.
According to them, it was Sechin's proposals that caused the delay in the publication of the presidential decree on countermeasures against the "Western ceiling" on oil prices - the document was originally promised to be published almost a month ago, but Vladimir Putin is studying Sechin's proposal. The fact that she was one of the first to transfer about 90% of her deliveries to Asian markets plays in favor of the head of Rosneft; she managed to reach such a bar back in mid-2022 - before the embargo and oil sanctions. Private companies were less prepared for such a reversal, the newspaper notes.
“Oil for export will have to be delivered according to established quotas in Sechin’s office,” a source explains to The Moscow Times.
Because of the president's thoughts, the domestic market is suffering - private companies have begun to suspend contracts for the supply of oil. Deputy Prime Minister Alexander Novak , in an interview with the Rossiya 24 TV channel, once again stated that Russia would not comply with the "Western ceiling" and would refuse to supply oil to countries that would support it. The former head of the Ministry of Energy is sure that in 2023 the world oil market will face a shortage, which will lead to an increase in oil prices to $80-100 per barrel. He also admitted that as early as next year, oil production in Russia will begin to fall, including due to Western sanctions.
It is not yet possible to assess the effect of the restrictions imposed by Western countries, but even one week of sanctions hit Russian exports sharply, which fell by 56%. Russian oil prices have already fallen below the "Western ceiling" set at $60 per barrel, and even the main buyer of Russian oil, India, refuses to take oil at a higher price. The authorities can compensate for the shortfall in income through the weakening of the ruble , but this may lead to a new round of inflation and an increase in rates in the economy, which will negatively affect other industries.