Rosneft CEO expects no worries around discounts for Russian oil

BANGALORE/MOSCOW, Feb 6 (PRIME) -- There should be no serious worry about discounts for Russian oil and its supplies on the market, Igor Sechin, CEO of oil major Rosneft, said on Monday during the India Energy Week.

“As regards to the price forecast and especially supplies from the Russian Federation, there should be no excessive worry about the problems connected with the discounts. I think that specialists are aware of the ways to solve the problem,” he said.

The benchmark price for Russian oil will not be formed in Europe, but in the countries it is sold to, he said.

“If Russian oil does not flow to the European market, there will be no benchmark price for Russian oil that does not go there. Benchmark prices will emerge in the places that actually receive oil,” Sechin said.

E.U. chief diplomat Josep Borrell said in an article he contributed to Vanguardia daily that Brussels expected Russia to lose around 300 million euros per day from the oil sanctions.

Russian oil is sold at a discount of U.S. $40 as compared with the Brent oil price meaning the country’s daily revenue from the sales should shrink to 500 million euros from 800 million euros, Borrell said.

The Western oil sanctions came in force on December 5, 2022. The E.U. stopped receiving Russian seaborne oil, while the G7 countries, Australia and E.U. capped the price of this oil at U.S. $60 per barrel. Similar measures came in force for Russian oil products on February 5.

In response, Russia banned supplies of oil and oil products under the contracts that use the price caps directly or indirectly. Exports of oil under the contracts that include price caps were banned from February 1, and the government is yet to decide on the date for oil products.

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