In addition, ceilings are no longer a market story. Remembering the lessons of the Soviet economy: when a price ceiling is set below the equilibrium price, there is a shortage of goods and services. When the regulator “releases” prices, they will skyrocket, as the Kremlin has repeatedly said.
“It would be stupid for everyone, including the consumer, to follow some non-market harmful decision, because consumers must realize that they will insist on prices that are pleasant to them, even if they achieve this, prices will go down, investments will be reduced to zero, in the end, prices will skyrocket and hit them, those who offer such solutions,” Putin explained.
Selling above the ceiling is possible. Both sides for a year got the hang of diluting Russian oil so that it miraculously turned into foreign oil.
— By December 20, 2022, more than half of all tankers leaving the ports of the Arctic, Baltic and Black Seas with Russian oil were heading through the Suez Canal without a final destination. Ships for Asia and no destination accounted for 89% of all deliveries last week. Thus, Russian oil companies are trying to redirect supplies of raw materials to other regions. Apparently, Russia will use gray schemes to prevent a drop in oil exports. It is now very difficult to estimate how much Russian oil will actually be delivered under such schemes,” says Alexander Potavin.