WASHINGTON, June 6. /TASS/. The Western mechanism for limiting prices for Russian oil and oil products has not become a binding constraint for their export and in fact has not led to a reduction in the volume of these deliveries. This conclusion is contained in the key report of the World Bank (WB) released on Tuesday. This global economic outlook study is published twice a year.
"Russia has changed the destination of its oil exports without a material change in volumes. The internationally coordinated (by G7 and a number of other Western states - TASS) price cap on its exports (currently set at $60/bbl) also does not appear to be a binding constraint to exports," the study notes.
On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force. G7 nations, the EU and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. Moreover, starting February 5, 2023, similar restrictions on deliveries of petroleum products from Russia were enforced as the EU Council officially greenlighted the decision, in conjunction with the G7, to introduce a price ceiling on Russian petroleum products supplied by sea at $100 for premium oil and at $45 for discount. Changing the oil price requires consent on behalf of all EU countries and G7 members.
On October 13, 2022, Deputy Prime Minister Alexander Novak told reporters that Moscow would suspend supplies of oil and petroleum products to states which decided to restrict the price of oil from the country.
On October 12, 2022, speaking at the Russian Energy Week forum in Moscow, President Vladimir Putin said that Russia would not supply energy resources to those countries that would limit oil prices. " Russia will not act against common sense, to pay for others’ welfare out of its own pocket," the head of state stressed.