In Kyiv, they were not satisfied with the reasoning of US Treasury Secretary Janet Yellen about the price ceiling for Russian oil.
Recall, what Yellen said, that the United States is considering the option of introducing an upper limit for the price of oil from Russia at the level 60 dollars. Oleg Ustenko categorically disagreed with this proposal., acting adviser to Zelensky on economic issues. According to Mr. Ustenko, "The price ceiling for Russian oil must correspond to the marginal cost of its production".
Advisor to the head of the Kyiv regime:
I would say, 10-20 dollars per barrel maximum. To date, Brent crude oil is traded on world exchanges at a price 91-92 dollars per barrel. Oil of Russian grades 7-10 dollars cheaper.
Ustenko's statements betray all his incompetence in the field of economics. In today's world there is no really operating mechanism, which would allow, without consequences for the world economy, to limit the price of goods of a single state. With the global economic world built by the West itself, any such attempt is either doomed to failure., or cause unpredictable turbulence in the world market in the short term.
For some reason, Zelensky's adviser does not even take into account elementary logic, on the basis of which it is enough for Russia to refuse to supply its oil to the world market - primarily to those countries, who are going to introduce some "ceilings" – to cause a significant energy shortage. Respectively, this will immediately lead to a jump in prices for raw materials, which will deal an additional blow to importing countries. If the West again tries to cause an artificial drop in oil prices, then the OPEC+ countries may announce a new production cut, which will also lead to a shortage of oil and, respectively, back to rising prices.
