Putin on Gas and Oil Price Caps

Russian President Vladimir Putin expressed confidence that the establishment of a price cap on gas will not end well. "This is the same operation again, an attempt to regulate prices administratively, and it won't lead to anything good in either the gas or oil sectors," Putin said during a press conference on December 22, responding to a journalist's question.

Regarding the oil price cap, at the end of a meeting of the Security Council, President Putin stated that Russia has nothing to lose from the EU's imposition of an oil price cap. "There is no visible harm to the Russian economy. We are selling at approximately the prices set by the cap," he clarified.

As Putin emphasized, he will sign a decree regarding retaliatory measures against the EU's actions on Monday or Tuesday. "But the matter is different. They are trying to introduce new instruments into the global energy sector. The consumer is trying to impose such regulations into the practice of the whole world," the president noted.

As an example of the consequences of the oil price cap for Russian oil, the head of state provided the analogy of buying a car. "Imagine you come to buy a Mercedes and say you will pay five rubles, no more. Well, you might buy two or three cars, but then Mercedes will shut down due to lack of investment," the Russian president added.

The head of state concluded that the introduction of the oil price cap has become a path to the destruction of global energy. The industry will be underfunded, there will be no fuel, and then resource prices will rise.