As US and Europe discuss how to implement a price cap on Russian oil, Russian Deputy Prime Alexander Novak says, “We will simply not supply oil and petroleum products to such companies or states that impose restrictions, as we will not work non-competitively.”

Analyst Comment: All a “price cap” would do is force Europe to buy oil from intermediaries like India and China at higher prices, who in turn buy Russian oil directly. The policy would have little to no impact on Russia and instead raise energy costs for Western nations who go along with the scheme.