Putin said he could cut oil production for countries that supported the Wests stupid idea for a price cap on Russian oil . Putin said that the proposed western price cap corresponds to the actual prices at which Russia sells oil today .
Moscow, December 9: Russia's President Vladimir Putin said on Friday that he could cut down oil production for countries that supported the West's stupid idea for a price cap on Russian oil.As for our response, I've already stated that we will not sell to those countries that make such decisions.We will probably think, if necessary, about a potential reduction in production, Putin told reporters.I'm not saying that this is a (made) decision, but we will think about it.According to Reuters, Putin's decree, which will be published in the next few days, would outline specific steps (of Russian response).This statement came after the European Union countries decided to cap the price of Russian seaborne oil at USD 60 a barrel.Putin said that the proposed western price cap corresponds to the actual prices at which Russia sells oil today and that the decision does not impact the region.If someone agrees that the consumer will decide the price, the industry will collapse. The industry is also underfunded, and if we only listen to consumers, this investment would be zero.All of this would lead to a dramatic rise in prices and a global energy crisis at some point.Putin was quoted by Reuters as saying that this is a stupid plan, poorly thought out and uncalculated.It would be foolish for everyone, including consumers, to take a non-market, harmful move. Ursula von der Leyen, the president of the European Commission, told Twitter that the EU deal on an oil price cap, which will be coordinated with the G7 and others, will stifle Russia's revenues.It will help us stabilize global energy prices, benefiting emerging economies around the world, Leyen said in a tweet.As you might know, the EU and other key G7 partners will have a full import ban on Russian seaborne oil as of December 5.We must also ensure that emerging and developing economies have continued to have access to certain Russian crude oil at low rates, and today, the EU, the G7, and other global partners have agreed to place a global price cap on seaborne oil from Russia, enabling it to be traded, brokered, and transported by EU operators to third countries, as long as it is solid below the cap.So this price cap will benefit immediately emerging and developing economies and will be updated over time so that we can anticipate market changes.