Russia is considering three scenarios, including banning oil sales to some countries and setting maximum discounts for selling its crude oil to counter price caps imposed by the West, Vedomosti newspaper said on Wednesday, as cited by Reuters.

The $60-a-barrel price ceiling set by the G7, the European Union and Australia took effect on Monday in an attempt to limit Russia’s ability to finance the war in Ukraine.

In response, the Kremlin and the Russian government are considering banning oil sales to all countries that supported the restrictions, Russian newspaper Vedomosti reported, citing two sources close to the government. This option would also prohibit sales through intermediaries, not just directly from Russia.

A second option being considered would ban exports under contracts that contain a price cap clause, regardless of where the oil ends up.

According to Vedomosti, the third option provides for the establishment of maximum discounts for Ural oil compared to international benchmarks for permitted sales.

Deputy Prime Minister Oleksandr Novak said on Tuesday that Russia’s response mechanism to oil price restrictions will begin to operate in December. Earlier, he stated that Russia may reduce oil production, but not by much.

Bloomberg reports that Russia is also considering setting a minimum price for international oil sales.

(article source Dreamstime.com)