Lower oil price ceiling would allow Russia to receive excess profits - energy expert Riabtsev

Energy expert Hennadii Riabtsev said this on Espreso TV. 

“If we talk about any restrictions and price ceilings, then it is worth understanding what the task is. The task is to limit the income of the Russian Federation. If the price ceiling is set at the level of USD 30 per barrel, this may provoke Russia's actions to limit oil supplies to the market. This, in turn, can raise speculative oil quotes to the level of USD 100-130 per barrel. This means that Russia would receive excess profits from the sale of its own oil as a result of another panic on the stock exchanges that it provoked,” he said.

According to Riabtsev, that is why a decision was made to limit oil at the level of USD 60 per barrel, which corresponds to the Urals level and the price set in the federal budget of the Russian Federation for the next year.