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The Russian crude price ceiling and the EU oil embargo present “new economic shocks,” the Bank of Russia said.
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They could “significantly reduce” Russia’s economic activity in the coming months, according to the bank.
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Russia is considering options to counter the price cap, including a ban on oil sales to some countries.
Despite general Kremlin skepticism about the myriad economic sanctions from the West, analysts at the country’s central bank are forecasting “new economic shocks,” thanks to a $60-a-barrel cap on the price of Russian oil and a ban on the Union. European country crude oil.
The European Union, the G7 and Australia have established a price limit for Russian crude that took effect on Monday. On top of that, the EU has also banned all Russian crude oil transported by sea.
The two measures could “significantly reduce” Russia’s economic activity in the coming months, analysts at the Russian central bank’s research and forecast department said in a statement. report on wednesday. They cautioned that their findings may differ from official position of the institution
The uncertainty posed by sanctions and restrictions came just as the economy of russia exceeded a “short-term decline” caused by The partial mobilization of President Vladimir Putin of men for the Ukrainian war in October, according to the central bank. Bank analysts attributed the recovery to an increase in government orders for estate.
While Western price and import restrictions on Russian oil could dampen the country’s economic activity in the short term, analysts said the country’s output could decline in the long term.
Russia’s oil production has already decreased slightly in October, the analysts added in their report, and its dynamics in the future “depends on the effect of various restrictive measures by hostile countries.”
Moscow denounced the West’s price cap on its oil exports and is still working on a response to the restrictions, Kremlin spokesman Dmitry Peskov said on Wednesday, according to the state news agency. RIA Novosti.
Russia is considering several options to counter the price cap, including banning oil sales to certain countries and setting a maximum price discount for its flagship Urals crude against Brent oil, Russian trade daily. vedomosti reported on Wednesday, citing two sources close to the cabinet.
Alexander Novak, the deputy prime minister, said on Sunday that the price cap is “interference” that could cause “destabilization, shortage of energy resources and reduction of investment” in the market, according to tass, another state news agency.
The price cap is already causing stop shipping — tankers are piling up off the coast of Turkey because Ankara is demanding the paperwork that the vessels are fully insured, the financial times reported on Monday.
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