USA (bbabo.net), - The United States Administration supports the West's $60 per barrel cap on Russian oil, which will be adjusted if the targets are not achieved. This was announced on Friday by the chief economist of the State Department, Emily Blanchard.
At a briefing at the US Foreign Office for foreign press, she said that the United States and the "international coalition", which includes the G7, the EU, Australia, are working to reduce the income of the Russian Federation, which go to a special military operation in Ukraine, as well as to prevent a global energy crisis.
“$60 is the best level for coalition partners to achieve these two goals in the near term. It should be noted that the mechanism for limiting the price of oil was deliberately created to be flexible. If the targets are not met, then the price cap level can be adjusted over time to make sure we hit them. I am optimistic that all of this will work and look forward to the implementation of the price cap mechanism,” Blanchard said.
She confirmed that this mechanism is new and the West has not “imposed such restrictions on the price” of oil before.
“It is specially provided that this mechanism be flexible, due to the fact that we do not care about the instrument of setting the marginal price. We care about the tasks, the goals for which the marginal price level is intended. And so the agility and flexibility of the price itself is what is absolutely necessary to achieve our two goals, ”added the economist.
Meanwhile, Russian Deputy Prime Minister Alexander Novak said on October 13 that Moscow would not supply oil to countries that artificially try to limit its cost through the use of a cap price mechanism. Speaking at the Russian Energy Week forum, the Deputy Prime Minister pointed out that the price should be formed in a market way, taking into account the balance of supply and demand.
On October 12, Russian President Vladimir Putin stressed that Moscow would not pay for the well-being of others at its own expense and supply energy resources to countries that would limit their prices. He called the introduction of a ceiling on fuel prices from Russia cheating tricks and shameless blackmail. In addition, Putin warned that capping oil prices could run the risk of imposing the same cap on other sectors, destroying the global market economy and threatening the well-being of billions of people.
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