"No oil for G7 countries": Putin announces retaliation for oil price caps

A sardonic Russian propaganda video shows a European car being towed by a horse.

"No oil for G7 countries": Putin announces retaliation for oil price caps

A sardonic Russian propaganda video shows a European car being towed by a horse. Appropriately, Kremlin boss Putin is threatening to end deliveries to all countries that have decided on the oil price cap. A decree is in the works.

According to Kremlin boss Vladimir Putin, the upper price limit for Russian oil decided by the West is not causing any losses to the commodity powerhouse. However, the non-market regulation of prices is destroying this economic sector, Putin told journalists in the Kyrgyz capital Bishkek. Putin made it clear that the upper limit of $60 per barrel (159 liters) set by the EU and the seven leading industrialized nations (G7) corresponds to the price at which Russia is currently selling its oil.

However, the energy superpower will no longer sell oil to countries that support price fixing, he said. Putin also confirmed that Russia is considering cutting oil production. Nothing has been decided yet. However, the Russian President announced a decree with reactions to the western price cap, which will be available soon.

The upper price limit has been in effect since Monday for oil transport by sea. Russia sees this as a violation of the laws of the free market. After long and difficult negotiations, the EU countries had previously agreed on a price cap for Russian oil, and the G7, Australia and Norway followed suit. The states want to force Russia to sell oil below the market price in the future. The aim is to dry up the Kremlin's war chest. In addition to Germany, the G7 also includes the USA, Canada, France, Great Britain, Italy and Japan. Germany currently chairs the group.

The price cap also applies to insurers, reinsurers or other financing of the oil business. With the world's major shipping and insurance companies based in the G7 countries, the price cap could actually make it harder for Russia to sell its oil at a higher price worldwide.

Meanwhile, Russia's propaganda conveyed the message of an alleged impending fuel shortage in Europe. The editor-in-chief of the "Russia Today" channel, for example, distributed a clip addressed to Europe's motorists, maliciously warning of sharply rising petrol prices.

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