Bloomberg reveals Russia’s plan to counter the G7 oil initiative

MOSCOW, July 15 – Russia is planning to create its own reference grade of oil, with the help of which Moscow will be able to resist Western attempts to hit its income, writes Bloomberg.

The Russian government has drawn up a plan to create a national oil benchmark next year as it seeks to defend itself against Western attempts to limit the flow of petrodollars into the country.

The publication claims to have read a document according to which key Russian ministries, oil producers and the Central Bank plan to start trading oil on the national platform in October.

“According to the plan, Russia will work to attract foreign partners to purchase oil in order to achieve trade volumes sufficient to establish a benchmark price between March and July 2023,” the agency notes.

Unnamed Bloomberg interlocutors in Moscow confirmed plans to set a benchmark oil price, noting that this would help fight external pressure, and recalled the oil initiatives of the G7.

Western countries continue to discuss various measures to limit Russia’s income from energy exports. So far, this has not been done either by imposing an embargo on oil or by voluntary refusals of foreign companies. The redirection of exports, alternative supply schemes, and the “sanctions premium” in oil prices allow Moscow to secure budget revenues even with discounted sales.

At the end of June, the G7 countries agreed to consider setting a “price ceiling” for Russian oil. Moscow called these plans another element of psychological warfare and noted that they could only lead to higher prices in the oil market.

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