Putin stunned by the move of price cap on oil, Russia’s decision may create an outcry

G-7 countries including America have decided to impose a price cap on Russian oil. This decision was taken with the intention of hurting Russia’s earnings from the sale of oil. On this, Russian President Vladimir Putin has said in a very strict tone that if a price cap is imposed on their oil, Russia will not sell oil to any country.

Putin has also warned of cutting oil production. Putin told reporters on Friday that Russia will not sell oil to countries that agree to this price cap or are involved in EU sanctions on the purchase of Russian oil. He said that if possible, we will also think about cutting oil production.

Let us tell you that since the Ukraine war, the EU’s sanctions and price cap on Russia are being seen as Putin’s possible first reaction. G-7 countries are going to impose price cap on Russian oil. This price cap can be from 65 to 70 dollars per barrel. This clearly means that Russia will not be able to sell oil cheaper or more expensive than this. After the price cap is implemented, if any company does not buy oil compatible with it, then shipping, insurance and other financial assistance will not be given to the companies for that oil.

The price cap on oil is a stupid decision.

Describing the price cap on oil as a stupid decision, Putin said that it is harmful for the global oil markets.  Putin says that it would be foolish for everyone to implement it.  Russia has already said that this price cap brought by western countries is against the principles of the market.

What is price cap?

Since the attack on Ukraine, many types of sanctions have been imposed on Russia.  These restrictions have basically been imposed by many big western countries including America.  There is also a price cap in these restrictions.  The G-7 countries will determine the price of Russian oil under the price cap.  Russia is currently selling oil at its own prices.  But once the price cap is imposed on Russian oil, the situation will not be the same as before.