Russian Finance Minister: The price ceiling mechanism is a non-market measure, and we are developing tools to respond to it

Russian Finance Minister Anton Siluanov told reporters today, Thursday, that Russia is preparing measures in response to the West’s imposition of a ceiling on the price of a barrel of Russian oil.

The Russian minister indicated that it was too early to assess the impact of the Western measure on the Russian budget, calling the Western move a move away from market principles that would have implications for the global market.

He said: “It is too early to talk about the impact on the budget. Now we are preparing procedures related to the reaction of our companies to the introduction of the ceiling.”

The Russian minister added: “This mechanism is clearly non-market. The West has always urged us to use transparent, market-based measures to influence the economy. Now double standards are being applied, you can’t deceive the market.”

Earlier, Russian Deputy Prime Minister Alexander Novak indicated that a mechanism was being developed to prohibit Russian companies from trading oil using a price ceiling in response to the West’s decision to set a price ceiling for a barrel of Russian oil.

The Russian official stressed that demand for Russian oil has been and will continue to exist, and the market will see changes in supply chains once the Russian barrel price ceiling is set.

Earlier this week, Western sanctions on Russian offshore oil came into force: the G7 countries, Australia and the European Union imposed a cap on the price of Russian offshore oil at $60 per barrel.

Source: TASS

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