A Russian oil cap would “return the upper hand to Putin”, says Total chief

A Russian oil cap would "return the upper hand to Putin", says Total chief

This sanctions mechanism is needed by the G7 countries to limit Moscow’s income.

A cap on Russian oil prices, a mechanism the G7 countries want to limit Moscow’s revenues, “bad idea“Which would bring the Russian president’s hand back,” said TotalEnergies CEO Patrick Puyane on Wednesday. “I think it’s a bad idea because it’s a way to give the advantage back to (Russian President) Vladimir Putinsaid Patrick Pouyanne, speaking at the Energy Intelligence Forum conference, which is being held in London and will continue until Thursday.

What I am sure of is that if we do it, Putin will say we do not sell our oil» and the price will not be 95 dollars, but 150 dollars. This is not something I would give to Vladimir Putin“, he added.

In September, the G7 countries decided to limit “urgently” The price of Russian oil, a complex mechanism to launch, in particular, inviting “broad coalitioncountries to implement it, limit the income associated with the sale of hydrocarbons that finance Moscow’s offensive in Ukraine. More precisely, Russia would sell its oil to these countries at a price lower than the one at which it sells it today, but which would remain higher than the price of production, so that it would be economically interested to continue selling it to them.

SEE ALSO – Sanctions: Brussels offers twenty-seven countries to limit the prices of Russian oil

An idea criticized by Moscow

But India and China, some of the world’s biggest oil importers, don’t seem to want to fall behind the G7 at this stage, with both countries benefiting significantly from lower Russian oil prices.

Russia’s Deputy Prime Minister for Energy Alexander Novak earlier on Wednesday condemned the idea, which “disrupts market mechanisms” and could have “very bad effecton global industry. It is possible to callshortage of oilIn the event of the adoption of such a measure, also provided for by the EU, Alexander Novak once again warned that Russian companies “will not supply oil to countries that use this tool“.

Shell boss Ben van Beurden was skeptical of the same proposal on Tuesday, saying that “hard to understandhow effective such a mechanism can be. “Intervening in complex energy markets will be very difficult“, he continued, urging governments to consult with experts before acting.

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