HomeMediaLatest NewsThe EU introduces a price ceiling for Russian oil. How will this affect Russia?

The EU introduces a price ceiling for Russian oil. How will this affect Russia?

08 October 2022

Salikhov Marcel R. President, Principal Director on Economic Studies, Head of the Economic Department

Marcel Salikhov, President of the Institute for Energy and Finance, commented to RTVI on the introduction of a price ceiling for Russian oil.

The effect of the price ceiling in practice is doubtful even from the point of view of the interests of the countries that have imposed sanctions, Marcel Salikhov comments:

“The ceiling, together with the reduction in production by OPEC+ countries, will lead to an increase in oil prices, because there will be less supply on the market. The EU countries will suffer economic losses due to the embargo on Russian oil, and at the same time they will have to control compliance with the price ceiling for supplies to third countries.”

The oil price ceiling by itself will not have a significant effect on Russia's oil revenues, as they are already declining, mainly due to the global recession, the expert notes.

As for the EU ban on services related to deliveries, Western companies have actually stopped insuring Russian deliveries, Marcel Salikhov says. Insurance is handled by Russian companies, reinsurance by the Russian National Reinsurance Company (RNRC).

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