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Post: TotalEnergies head calls Russian oil price ceiling a bad idea


Oil pumps in the Almetyevsk region of the Republic of Tatarstan. Archive photo

TotalEnergies chief Pouyanne: Limiting Russian oil prices is a bad idea

MOSCOW, October 5 – RIA Novosti. Putting a ceiling on Russian oil prices is a bad idea. declaration French energy company TotalEnergies Patrick Pouyanne at the Energy Intelligence Forum in London.

“I think it’s actually a bad idea,” Pouyanne said when asked by Bloomberg about his thoughts on Russia’s oil price ceiling. He added that the market is “already doing its job and Russian oil is already available at a huge discount.”

The Czech Republic’s EU representative, Edita Hrda, said on Wednesday that the permanent representatives of EU countries have agreed on new sanctions against Russia and that the technical procedure for their conclusion has been initiated. According to the European Commission’s previously published proposal, the sanctions would include a legal framework to set a ceiling on Russian oil prices.

Western countries continue to discuss various measures to limit Russia’s revenue from oil and gas exports. So far this has not been done either by embargoing oil, including by the European Union, or by the voluntary refusal of foreign companies. Export redirection, alternative supply plans, and the “sanction premium” on world oil prices allow Russia to secure budget revenues even with oil cuts.

Earlier on Wednesday, Russian Deputy Prime Minister Alexander Novak said that the idea of ​​setting a price cap for Russian oil violates all market mechanisms, which could have a detrimental effect on the global oil industry, causing underinvestment and rising prices.

The West has increased sanctions pressure on Russia due to the situation in Ukraine, which has resulted in higher electricity, fuel and food prices in Europe and the USA. Earlier, Russian President Vladimir Putin commented on the West’s idea of ​​limiting the prices of Russian energy supplies, saying that Russia would not supply anything abroad if this was against its own interests.

Source: Ria

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