The price cap is “a stupid decision,” Putin said. “The proposed ceiling (of $60) corresponds to the prices we are selling at today. In that sense, it does not affect us in any way,” he told reporters present. The price of a barrel of Russian Ural oil is around USD 65, barely above the price ceiling, implying a limited impact in the short term. For countries that import Russian oil, it would be “stupid” to follow the measure.
The G7 countries and Australia reached an agreement a week ago to cap the price of Russian oil at $60 a barrel. Earlier in the day, the 27 countries of the European Union also reached a similar agreement. The measure came on top of the introduction of a European embargo on the import of Russian oil by sea that took effect on Monday. For example, Moscow’s income, with which it can finance the war in Ukraine, must be limited.