Russia plans to set a floor price for international oil sales in response to the cap set by the G7 countries.
Citing two officials with knowledge of the matter, the news said that the Moscow administration is considering either applying a fixed price for the country's barrels or stipulating maximum discounts on international criteria where they can be sold.
The G7 ceiling for Russia's seaborne oil went into effect Monday, as Western states tried to limit Moscow's ability to finance its war in Ukraine, but Russia said it would not comply even if it had to cut production.
There is no figure yet determined about the level of the floor price application.
The level of the ceiling price is critical.
Experts underline that this level will be critical for buyers who want to benefit from insurance and other G-7 country services at international standards, that the floor price level should be below the ceiling price set by the EU, which is 60 dollars. On the other hand, it is considered that Greek tankers will also require that they be below this level for their transportation activities.
Officials underlined that Russia aims to offer a transparent price mechanism to its buyers and wants to stick to a market-based approach. Accordingly, the Kremlin administration aims to avoid offending the neutral buyers by putting them under pressure with non-market steps.
Foreign sources stated that one of the options is to set a ceiling on the discount applied to oil, thereby creating a ceiling price for the crude oil sold. As another option, it was noted that determining a fixed selling price for crude oil is being considered, but it is planned to regularly revise the levels determined for both applications in line with market prices.
Russian Deputy Prime Minister Alexander Novak also stated on Tuesday that they will not be hasty in the response to the ceiling price application and that the decision will be made by the end of the year.