Moscow takes dramatic pause to respond to Western oil price caps - Sina

Sina: Russia takes dramatic pause to respond to the West with 'Putin's formula'

Moscow will use "Putin's formula" to respond to latest Western sanctions, Chinese publication Sina reports. 

On December 5, EU countries implemented a decision to cap prices on Russian oil in an effort to limit Russia's income from energy supplies. The United States, Great Britain, Australia, Japan, and Canada announced their support for the decision. The United States made the greatest effort to ensure that the restrictions were supported.

According to this decision, Russian oil can be sold at no more than $60 per barrel. It goes about sea oil transportation. If a higher price is detected, the companies that violated the law would be subject to sanctions. They can be denied insurance, access to ports, and so on.

It has been two weeks after the EU imposed the restrictions, but Russia keeps silence and does not announce retaliatory measures. The countries that supported the oil price cap supposedly assume that Russia would not respond to the situation. However, Moscow will retaliate, and Russia's response will be well-aimed and balanced, the article in the Chinese publication said.

"Russia will respond to the decision of the West by implementing the 'Putin Formula.' Moscow will no longer supply energy resources to the United States and its allies in the future," the article says.

Expectations of the whole world to support the price cap move did not materialise. Not only can Russia cut off the supplies of its energy resources to unfriendly countries, it may also reduce oil production, which will cause oil prices on world markets to climb.

Chinese experts have no doubt that Russia's response will follow. Putin made it absolutely clear that the Russian Federation will not sell to the countries that supported price caps.

The pause that Moscow took before announcing its retaliatory measures only makes the situation even more dramatic for the West, the article on Sina says.

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Author`s name Petr Ermilin
Editor Dmitry Sudakov