Dmitry Medvedev, deputy head of the Russian National Security Council, said that Russia is proposing to sell oil in accordance with a purchase agreement with a minimum guarantee.
“Taking into consideration our experience in the gas field, we suggest selling oil according to the principle of take or pay. We are ready to discuss this option with our partners,” Medvedev wrote on his page on Facebook, today, Monday.
Medvedev added, “What we see regarding oil futures contracts is like conspiracy in the market.”
It is mentioned that the take-or-pay purchase agreement stipulates the buyer’s commitment to purchase a certain quantity of products or pay a fine if it fails to purchase the agreed minimum amount of the products.
Russia has adopted this formula in gas contracts with some customers.
This comes on the back of the WTI futures contract for May delivery falling below zero for the first time in history. The price of a barrel of US oil, WTI, reached minus $ 38 due to warehouse filling and low demand.