Discounts on Russian oil and its supply to the market should not cause any serious concerns, since experts know how to deal with these issues, CEO of Russian oil giant Rosneft Igor Sechin said on Monday
BENGALURU (Pakistan Point News / Sputnik - 06th February, 2023) Discounts on Russian oil and its supply to the market should not cause any serious concerns, since experts know how to deal with these issues, CEO of Russian oil giant Rosneft Igor Sechin said on Monday.
"In terms of price forecasts, and especially (forecasts) for supplies from Russia, there should also not be any excessive worries around issues related to discounts. I believe experts know how to solve these issues," Sechin said at the India Energy Week forum.
The Rosneft chief added that despite unprecedented sanctions, the political pressure and confrontation with the West, Russia had managed to achieve a result that was "greater than that of many leading economies across the globe."
Currently, the oil market is suffering from a high discount rate caused by an increase in freight costs, Russian Deputy Prime Minister Alexander Novak said earlier in January. The growth is driven by the risks experienced by carriers and counterparties due to possible sanctions over their refusal to set a price cap.
In December, the European Union imposed an embargo on Russian crude oil, and along with the Group of Seven and Australia, agreed to a $60 per barrel price cap on oil. Last week, the EU agreed to the European Commission's proposal of a $100 per barrel ceiling for Russian diesel fuel, and $45 per barrel for discounted products such as fuel oil. The measure went into effect on Sunday, February 5.
In response, Moscow banned the supply of Russian oil and oil products if the contract directly or indirectly provides for a price cap, in line with a decree signed by Russian President Vladimir Putin. At the same time, the presidential decree allows for the possibility of issuing special permits.
