Saudi energy minister Prince Abdulaziz bin Salman stated on Sunday that the effects of European sanctions on Russian crude oil price caps remain to be seen. According to him, the effectiveness of the sanctions’ implementation process also remains unclear.
Named the Group of 7 price cap, this latest sanction on the Russian oil trade was formulated with the aim of limiting the finances available to Russia as it continues its war efforts against Ukraine.
“These tools were created for political purposes and it is not clear yet whether they can achieve these political purposes,” Prince Abdulaziz said of the European sanctions. He added that central banks would also be preoccupied with implementing mechanisms to curb the ongoing inflation crisis.
While Russia claims that it may not be able to conform with the price caps, the OPEC+ alliance continues to restrict its own production. The alliance passed a decision on October 5 to cut its production by two million barrels per day. During a meeting on December 4, OPEC+ decided to keep its production levels unchanged as member nations continue to observe the oil market for changes amid the recent sanctions on Russia.