The Russian authorities are considering the possibility of introducing a "bottom" of prices – a minimum value, a fall below which will make it impossible to sell oil of Russian origin. The move is intended to be a response to the Western oil price cap mechanism, which prohibits serving Russian companies selling oil at prices above $60 per barrel. This is reported by Bloomberg, citing sources close to the Russian leadership.
Sources of the publication claim that Moscow is considering two options: either a fixed "bottom" of prices, or the maximum amount of discount in relation to the reference grades of Brent and WTI oil. The sources of the agency did not give any clear guidelines, while traders are only interested in one thing: how much higher or lower the already established ceiling will be the "bottom".
The source of the publication assured that Russia seeks to offer its customers a simple and understandable pricing mechanism based on the market. At the same time, Moscow does not want to harm neutral countries with its measures, thus putting pressure on them, the source notes. Both Russian mechanisms involve the introduction of a single standard for all Russian companies: either this is the minimum oil price, or this is the maximum discount in relation to the international benchmark. Both indicators will be "floating" – that is, their size will change depending on the current market conditions.
At the same time, the Russian authorities have not even discussed such measures with the oil business itself. The agency notes that Russian President Vladimir Putin intends to adopt a corresponding decree that will directively oblige all Russian oil companies, as well as traders cooperating with Russian companies, to comply with the chosen measures. To countries that agree to comply with the ceiling set by the Western coalition, Russia will not supply its oil.
On December 5, the Russian oil price ceiling mechanism came into force , which prohibits the provision of services to Russian companies if the oil price is above $60 per barrel. Sanctions apply to financial, logistics, insurance and other types of services. In the future, the price ceiling may be revised if the market situation requires it.
