Russian oil will face a capping of its price by the end of 2022, a senior US official said on Wednesday.
The US confidence in a price cap follows positive reaction by China and India to the plan, which would limit Moscow’s revenues over its aggression in Ukraine yet keep key customers for Russian oil.
“They introduced the idea of looking to do a price cap but they also said by December, they plan to put in place their insurance ban.”
He said the objective was to drive down global energy prices and also allow Russian oil to flow into the marketplace.
Russian oil will not be exported to the world market if the price is capped below the cost of production, Interfax news agency quoted Deputy Prime Minister Alexander Novak as telling Russian television.
- Reuters, with additional editing by George Russell