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Russia Does Not Want to Sell Oil to Nations Supporting Price Cap
(MENAFN) Reports indicate that Moscow will not supply oil to nations backing an “anti-market” price cap scheme, Russian Deputy Foreign Minister Andrey Rudenko stated, as global crude demand rises amid the ongoing Middle East conflict.
Western countries supporting Ukraine, including G7 members and Australia, previously announced plans to phase out Russian oil and gas imports following the escalation of the Ukraine conflict in 2022. These measures reduced purchases and forced Russia to sell crude at a discounted rate under a price cap system, currently set at approximately $44 per barrel.
However, in recent weeks, this trend has shifted. Russia’s Urals crude has been sold to India and other buyers at a premium, with Urals DAP West Coast India prices exceeding $121.5 per barrel on March 19, 2026, roughly $3.9 per barrel above Dated Brent, compared to a $12 per barrel discount earlier in March.
Rudenko told Izvestia that energy markets are experiencing volatility due to tightening supplies and rising prices. On the topic of resuming oil sales to “unfriendly” countries like Japan, he said Tokyo is restricted by the price cap, which he called an “anti-market” measure that disrupts supply chains, and added that Russia will not sell oil to “provocative” nations.
Energy prices surged following coordinated strikes by the US and Israel on Iran on February 28, prompting retaliatory attacks across the region. The crisis has effectively closed the Strait of Hormuz, a key passage for roughly one-fifth of global daily oil shipments, sending oil prices up nearly 50 percent to almost $120 per barrel earlier this month.
Amid the spike, the US temporarily lifted sanctions on Russian oil loaded onto tankers before March 12, allowing its sale until April 11. US Treasury Secretary Scott Bessent said this could generate about $2 billion in revenue for Russia. Several Asian countries, including Thailand, the Philippines, Indonesia, and Vietnam, have already shown interest in Russian crude, while major buyers India and China continue to purchase available cargoes under the waiver.
Western countries supporting Ukraine, including G7 members and Australia, previously announced plans to phase out Russian oil and gas imports following the escalation of the Ukraine conflict in 2022. These measures reduced purchases and forced Russia to sell crude at a discounted rate under a price cap system, currently set at approximately $44 per barrel.
However, in recent weeks, this trend has shifted. Russia’s Urals crude has been sold to India and other buyers at a premium, with Urals DAP West Coast India prices exceeding $121.5 per barrel on March 19, 2026, roughly $3.9 per barrel above Dated Brent, compared to a $12 per barrel discount earlier in March.
Rudenko told Izvestia that energy markets are experiencing volatility due to tightening supplies and rising prices. On the topic of resuming oil sales to “unfriendly” countries like Japan, he said Tokyo is restricted by the price cap, which he called an “anti-market” measure that disrupts supply chains, and added that Russia will not sell oil to “provocative” nations.
Energy prices surged following coordinated strikes by the US and Israel on Iran on February 28, prompting retaliatory attacks across the region. The crisis has effectively closed the Strait of Hormuz, a key passage for roughly one-fifth of global daily oil shipments, sending oil prices up nearly 50 percent to almost $120 per barrel earlier this month.
Amid the spike, the US temporarily lifted sanctions on Russian oil loaded onto tankers before March 12, allowing its sale until April 11. US Treasury Secretary Scott Bessent said this could generate about $2 billion in revenue for Russia. Several Asian countries, including Thailand, the Philippines, Indonesia, and Vietnam, have already shown interest in Russian crude, while major buyers India and China continue to purchase available cargoes under the waiver.
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