Russia has approached several Asian countries to discuss possible long-term oil contracts at steep discounts, as U.S. officials continue to push a plan that would cap the price of the country’s oil, according to a Western official.
The tentative conversations to offer some Asian buyers discounts of up to 30% may be a sign Russia is trying to head off discussions by Group of Seven nations about carving out an exception for pending European Union sanctions on Russian oil, said the official, who asked for anonymity to discuss sensitive talks. That plan would allow third parties to more easily purchase Russian crude oil at a low price set by Western nations.
Russia may also be trying to lock in replacement buyers for the oil it’s currently selling to Europe.