Vladimir Putin, the president of Russia, has threatened to halt oil sales to nations who accept the West’s plan to impose a price ceiling, saying that doing so will lower oil production. The comments were made in reaction to a decision by the Group of Seven, the European Union, and Australia to set a $60 per barrel price cap on Russian oil in an effort to limit the Kremlin’s ability to fund its conflict in Ukraine. On Monday, the price cap went into force.
After a regional summit in Bishkek, the capital of Kyrgyzstan, on Friday, Putin declared, “I have already said that we simply will not sell to those countries that make such decisions.”
Russian President Putin attends Eurasian Economic Council, talks to focus on energy and trade
The price cap is a “stupid decision” that is “harmful to global energy markets,” he continued, adding that “we will consider a possible reduction in production if necessary.”
The Russian leader said, without going into greater detail, that Moscow will announce punitive measures “in the next few days.”
The market price of a barrel of Russian Urals oil is currently hovering at $65 dollars, which is just a little bit more than the agreed price cap.
Putin hints at ending the war in Ukraine
Putin discussed the potential of ending the conflict in Ukraine after the summit, noting that Russia is seeking a settlement with its neighbor.
“The settlement process as a whole, yes, it will probably be difficult and will take some time. But one way or another, all participants in this process will have to agree with the realities that are taking shape on the ground,” he said.
Just a few days prior, Putin, 70, hinted at a protracted conflict in Ukraine by stating that his military campaign could be a “long-term process.”
He added that everything was going according to plan for his military operation.
“Everything is stable. There are no questions or problems there,” he said.