Alexey Belogoryev, Deputy Principal Director on Energy Studies of the Institute for Energy and Finance, commented to Svobodnaya Pressa on the possible effectiveness of imposing marginal prices for Russian oil.
Alexey Belogoryev recalls that the idea to introduce certain marginal prices for Russian oil has been in the air since March.
According to the economist, it is completely unclear what price level Western countries intend to set:
“Starting from March, Russia has been selling Urals oil at a discount of $30-35 per barrel to the price of Brent. Over the past four months, the main economic result of the sanctions is that India and China have gained competitive advantages in relation to Western countries, since they have been able to buy oil much cheaper than all other states. Of course, Europe wants to correct this situation. If the West sets a "ceiling" at approximately the same level, around $80 per barrel, then this will not change anything for Russia, and our companies will be able to agree to these conditions. But if Western countries want to set prices significantly lower, for example, $40 per barrel, then it is clear that this is not profitable for Russian companies, and they will not do this.”
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