Deputy Chairman of the Security Council of Russia, Dmitry Medvedev, announced on his Facebook page that Russia is ready to sell oil on a "take or pay" basis and is open to a discussion of this option with partners. He also noted that the current situation on the oil market "is very much [similar to] a cartel".
"With account for our experience in the gas sphere, we suggest selling oil on a take-or-pay basis. We are ready to discuss this option with our partners," Medvedev wrote on his Facebook page.
A Take or pay basis describes an agreement to buy something, in this instance gas and oil, in which the buyer must pay a charge even if they decide later that they do not want the product.
Medvedev's announcement follows the dramatic plunge of the price of West Texas intermediate (WTI) crude for delivery in May, that fell to a negative value for the first time in history, reaching minus $37.63 per barrel.
An unprecedented collapse in energy prices comes in spite of a historic agreement by OPEC+ and partner nations to cut oil output by some 9.7 million barrels per day through June.
