Russia will not sell oil at lower price cap: Putin
Moscow (Russia), October 12: Russian President Vladimir Putin declared on Wednesday that Moscow would not sell oil at a lower price cap after the Group of Seven (G7) pledged to set a price cap on Russian oil supplied worldwide.
"I have to say that Russia will not act against our own benefit, we will not act to decrease our standing by providing oil or gas at lower prices. No, we will not succumb to this. We will not play by the rules others set and will not act to our detriment," said Putin while speaking at the Russian Energy Week 2022 event at the Russia state-affiliated media - RT.
Western countries are increasing their efforts to strip Russia of its primary source of revenue, 'oil.'
As the Ukraine war enters its eighth month with no end in sight, the West fears the Kremlin is financing the invasion with earnings from the continuous sale of fossil fuels, which account for more than 40% of its budget, according to Euronews.
The G7 cap would bar Russian cargoes from exporting oil that surpassed the G7 limit, which is still undefined. As a result, Russia would lose a considerable amount of the oil earnings it would normally gain if the cap were not in place.
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According to Russia's central bank, crude oil exports will be around Euro113 billion in 2021, in addition to the Euro70 billion earned from refined goods such as gasoline and diesel, according to Euronews.
Recently, Saudi Arabia and Russia, as heads of the OPEC Plus energy cartel, agreed to their first substantial production cut in more than two years in an effort to raise prices, opposing moves by the US and Europe to cut off Moscow's enormous revenue from crude sales.
President Biden and European leaders have advocated increased oil production in order to reduce gasoline prices and punish Moscow for its aggression in Ukraine. The New York Times said that Putin has been accused of using energy as a weapon against countries opposing his invasion of Ukraine, and the optics of the decision could not be overlooked.
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-PTC News
