Washington seeks to set a ceiling on the price of Russian oil above the cost of its production, but below the market

U.S. Deputy Treasury Secretary Vali Adimo said that the United States and its allies are seeking to set a ceiling on the price of Russian oil above the cost of its production, but below the market price.

He expressed confidence that the G7 initiative would cut Russia’s revenues but keep the incentive to continue deliveries.

He said: “The price ceiling creates a clear economic incentive to sell. We intend to set a price ceiling above the cost of production in Russia, at a level close to historically acceptable, while leaving a difference less than prevailing market prices. and the prices that Russia receives today.

According to him, Russia does not have many opportunities to store oil, and the condition of the wells is not conducive to its storage.

“As a result, Russia will be forced to sell or face the risk of deteriorating production capabilities,” he added.

Source: RIA Novosti

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