Russia to set oil price based on market economy principles

Finance Minister Anton Siluanov said that Russia would only sell oil at market price to those countries that opposed the price cap. 

He noted that the price cap could affect the amount of the discount in some way. Russia is planning to ban the supply of crude oil to nations that imposed the cap. The oil price will be determined based on market economy principles. According to Siluanov, price controls can’t be imposed within market-based pricing. 

The EU sanctions package including a ban on imports of Russian crude by sea came into force on December 5. EU countries agreed to cap Russian oil at $60 per barrel. G7 and Australia joined them on the Russian oil price ceiling. 

On December 27, Vladimir Putin delivered a response to EU measures. He signed a decree banning the supply of crude oil to nations that imposed the cap. It will last from February 1, 2023 to July 1, 2023.