Preparations for the oil embargo – Russia |
Interfax-Russia.ru – Russia, in the frivolous decisions of the EU and the G7 to establish a “ceiling” of prices for the supply of petroleum products, is working to find new routes for reorienting oil exports.
A week ago is expected due to the next package of applications in relation to Russia. In particular, it provides for the introduction of a legal framework for the implementation of the “ceiling” of prices for transportation of oil by sea in percentage of countries, as well as other restrictions on offshore crude oil and oil products addressed to third countries.
The idea of achieving, on the introduction of agreements by the leaders of the EU, is logical to choose Russian oil for buyers in third countries, access to which belongs to European insurance and financial services only if they are limited by price limits for this raw material. Under this sanctions regime, it is possible “to provide transport and these services if oil or oil products are purchased at or below a predetermined marginal price.”
At the same time, it may be released from restrictions on the “ceiling” of oil prices for Russian oil, it is expected to be important for energy security in third world countries. The eighth package considers such projects as the Sakhalin-2 project, mixed with condensate, if found in Japan. This list may be expanded later.
Earlier, the G7, in addition to Japan, also included Great Britain, Germany, Italy, Canada, France and the United States, agreed to set a “ceiling” for Russian oil prices. At the same time, the coalition provides for the possibility of working to consider a number of factors in order to achieve an international consensus on dynamics, for which an established price ceiling will be set.
Nevertheless, everything in use should be considered a good idea to impose a price cap on Russian oil. In particular, the head of the second largest oil company in Europe, TotalEnergies, Patrick Pouyanne, called the G7 plan to administratively limit prices for Russian oil an unsuccessful initiative. At the Energy Intelligence conference Pouyanne, random words are quoted by Bloomberg as being applied to the fact that the market is already doing the job, and Russian barrels are borrowed at a “heavy discount”.
Russian officials have repeatedly stated that they will not sell oil in countries that join the limit, the Russian Federation will not, and in most cases this is the realization of the plan of falling to rising prices on the market.
Press Secretary of the President of the Russian Federation Dmitry Peskov last week accused the United States of actions aimed at destabilizing the international energy market. In an interview on TV “Russia 1” A Kremlin spokesman said the US is “trying to manipulate its oil reserves by dumping more on the market.”
“That is, in fact, such a game did not come to anything good,” Peskov said.
The Russian Foreign Ministry, in turn, to consider oil price ranges, the United States spoke out and turned to “freedom of the economy, largely based on self-regulation within the framework of international norms and rules.” Russian Foreign Ministry Spokesperson Maria Zakharova focusedthat negotiation actions suggest, including the ideas of an oil price “ceiling” and decisions against those who buy Russian oil, are illegitimate and conclude agreements.
“In many ways, the whole situation in Ukraine arose precisely because of energy resources, they needed a barrier in the way of Russian energy resources in Europe.
The fact that the president of the price ceiling for the Russian is fraught with a deficit, which is also used by Russian oil, Vladimir Putin.
“We need to clearly define if we reduce the share of oil in Russia or other countries, establish some artificial price funds, this will inevitably worsen the investment climate for the entire world energy industry. It will hit the poorest states,” he said, speaking at a meeting of the Security Council of the Russian Federation .
In addition, according to him, today there is no guarantee that the practice of “price ceiling” for oil will not apply to other industries and will not spread to other countries outside of Russia. This means that the head of the Russian state added that “their adventurous decisions of some Western politicians are global market discussions, according to the constitution, restrictions on the distribution of the population.”
The President emphasized even more that Russia would not supply oil to those countries that limit the price of Russian oil.
“Russia will not act contrary to common sense, pay for someone else’s well-being at its own expense. (…) that we will not act to our own detriment, keep in mind, ”Putin said.
In his opinion, Russia’s principled position is determined by the fact that “stability, balance in natural markets and a secure future for peoples can arise through joint loads – in work, honest dialogue at the level of indicators of a solidarity aggregate and taking into account the individual interests of another person.”
It was this kind of dialogue, Putin noted, that was invited to the meeting of the Russian Federation under the OPEC+ agreement.
Last week, OPEC + decided to cut oil production quotas by 2 million barrels per day. The ministers justified their decision by the uncertainty associated with the prospects for the world economy and the oil market, and also set high forecasts for the oil market before the head.
After that, White House press secretary Karine Jean-Pierre said that US Joe Biden considers it appropriate to reconsider relations with Saudi Arabia. The American president himself told reporters that he intends to arrest the OPEC + decision with Riyadh. He did not specify what exactly will be discussed, advising to “follow the news”.
In its turn Associated Press With reference to the call of the Saudi Foreign Ministry, it reports that the American side was urged by Saudi Arabia to postpone the decision to reduce the quota for oil production. The agency notes that its one-month delay has reduced the risk of rising fuel prices ahead of the US midterm elections in November, in which the Democratic Party is accumulating leftovers.
Saudi Foreign Minister Faisal bin Farhan, for his part, said that the OPEC + decision, which caused Washington’s displeasure, reduced oil production quotas was economic, not dispersed.
However, there were no cases in the US with Riyadh scores. In particular, according to US Security Council spokesman John Kirby, the OPEC+ decision weakens anti-Russian powers. According to Kirby’s calculations, which are produced by the Western media, other OPEC+ countries are quietly telling the US that they “feel compelled to support Saudi policy.” He also said that the United States had previously provided Saudi structures with information proving that there were no market justifications for the planned step, and that the next OPEC + meeting was underway.
Finance ministers and major G7 central banks have also called on OPEC+ to increase oil production.
“We continue to talk about oil production by countries about the need to increase production in order to reduce the volatility of world markets.
Meanwhile, a number of representatives of the US presidential administration are expressing increasing concern that the plan to limit prices for Russian oil may have negative reciprocal consequences after receiving production quotas from OPEC+ countries.
According to the agency bloomberg Citing sources, the US wants to save enough RF resources in the global market to prevent a price spike. However, the US plan to cut prices was revealed from the start and was the result of intense escalation cases with European allies. Its outlook is now closer to the OPEC+ outcome, according to people familiar with the approach.
However, the plan is limiting consumer support in the presidential administration and among many allies. According to one of the sources of the agency, this was one of the best options for reducing Russia’s oil revenues.
At the same time, some officials take responsibility for the fact that OPEC + increases volatility in the markets, and the actions of the United States to limit the price of Russian oil could cause prices to jump. There is also discussion that Russia might retaliate by cutting off fuel supplies.
A senior US Treasury Department official said the countries working to impose a cap on Russian oil prices will hold a series of meetings over the next few weeks to determine a specific level.
Earlier, a spokesman for the US Treasury stated that the limit should be higher than the average cost of production in Russia, which is about $44 per barrel, in order to encourage continued production.
A source told the agency that meetings with the progress of the G7 talks on discussing the issue of a price ceiling begin in the second half of October. According to him, first they are trying to set a ceiling for oil prices, and then they will consider a limit for oil products.
The head of Gazprom Neft, Alexander Dyukov, acknowledged that after the application of the price cap mechanism by virtue of the price cap, the Russian company faced difficulties.
“Of course, there will be some difficulties (for the export of Russian oil – IF). Until the end, we still do not understand all the complexities.
In his opinion, these difficulties are solved by reorienting the supply of oil and petroleum products from Europe to new markets. To do this, it is necessary to create a supply infrastructure, “which should just support our entry into new markets.”
The head of Gazprom Neft noted that the Russian oil administration has not been in a “thermal bath” for a long time, and has experience in solving complex problems, gained eight years ago after the first decision was made.
He believes that the new ones are common specifics, but at the same time they are their own promising and fast-growing.
“We are already present there, we need (this presence – IF) to increase,” added the head of Gazprom Neft, adding that cooperation with the participants is scheduled to be discussed not only within the framework of the proposal of hydrocarbons, but also in the technological sphere, for the supply of equipment. .
Deputy Prime Minister Alexander Novak also said that Russia is probably a European embargo on Russian energy resources.
“Today our energy is stable. Yes, there is a force majeure in gas due to sabotage for the consideration of infrastructure facilities. We are ready for the situation that will be in December for oil and from February 2023 for oil products. And their resources to the east count that the country is one of the main suppliers in the world,”
He said that for the reorientation of oil exports, decisions have already been made at the level of parameters.
The Deputy Prime Minister of the Russian Federation believes that interventions in the supply of energy resources should not be allowed, since this may have an impact on any export load.
“Our companies say that (oil price ceiling – IF) is a precedent, and how it will work is not clear. This is a mechanism that is easy to bypass, we understand that this is a redistribution of financial flows. And we understand that this can affect any export industry, any country,” Novak said.
At the same time, he added that, as the President of the Russian Federation indicated, Russia will not, to the detriment of its economy and its company, generate oil by those countries that interfere in the economy of other countries.
Novak recalled that oil volumes in countries under sanctions – Iran, Venezuela and Russia – account for almost 20% of the entire French market. In such circumstances, according to the opinion, the predictability of oil prices is out of the question.