`Russia will not sell oil at lower price cap,` says President Putin

President Putin said this after the G7 cap would prevent Russian cargoes from selling oil that exceeded the yet-to-be-determined G7 limit.

New Delhi: After the Group of Seven (G7) pledged to set a price cap on Russian oil sold globally, Russian President Vladimir Putin said on Wednesday that Moscow would not sell oil at a lower price cap. Putin stated at the Russian Energy Week 2022 event hosted by Russia's state-owned media - RT, "I have to say that Russia will not act against our benefit, we will not act to decrease our standing by providing oil or gas at lower prices. No, we will not succumb to this. We will not play by the rules others set and will not act to our detriment." Western countries are increasing their efforts to deprive Russia of its main source of revenue, 'oil.'

As the Ukraine conflict enters its eighth month with no end in sight, the West suspects the Kremlin is funding the invasion with profits from the continued sale of fossil fuels, which account for more than 40% of its budget, according to Euronews. The G7 cap would prevent Russian cargoes from selling oil that exceeded the G7 limit, which is still unknown. As a result, Russia would lose a significant portion of the oil revenues it would otherwise earn if the cap were not in place.

According to Russia's central bank, crude oil exports will be worth Euro113 billion in 2021, in addition to the Euro70 billion earned from refined products such as gasoline and diesel, according to Euronews.

Recently, Saudi Arabia and Russia, as leaders of the OPEC Plus energy cartel, agreed to their first large production cut in more than two years to raise prices, countering efforts by the US and Europe to cut off Moscow's enormous revenue from crude sales. President Biden and European leaders have urged increased oil production to lower gasoline prices and punish Russia for its aggression in Ukraine.

(With agencies' inputs)