News reports said today, Friday, quoting informed sources, that the European Commission has informed member states that the Russian oil price ceiling, which was previously set at about $60 per barrel, has proven effective in harming Russia’s ability to provide dollar liquidity from fuel without harming energy markets.
At the same time, I followed the news reports that the European Commission informed the member states that there is no desire among most of the G-7 countries to reduce the ceiling of the Russian oil price now, and that it will remain at the same level without change.
In mid-March, the Group of Seven countries agreed to revise the price ceiling, with legislation stipulating that the goal should be to maintain the level of the Russian oil price ceiling at 5% below average market prices. Therefore, a group of Member States, including Poland and Estonia, requested that the ceiling level should be lowered.
It should be noted that at the beginning of this month, the Kremlin spokesman, Dmitry Peskov, repeated through his speech to journalists; Russia will not accept the price ceiling imposed on its oil and gas products. He continued saying; Russia has taken many measures to protect Moscow’s interests from damage, adding that the price ceiling has not harmed the country’s economy so far.
Peskov also commented that Russia’s economy has proven remarkably resilient in the face of harsh Western sanctions, but the oil price cap has affected global oil prices.