Capping the price of Russian oil, as Western countries are considering punishing Russia for the invasion of Ukraine, could just push up the price of oil on the world market. Russian Deputy Prime Minister for Energy Aleksandr Novak warned about this today.
Such a measure will lead to a market imbalance and a shortage of energy in the market, which in turn will lead to higher prices for European consumers, said Novak with Russian TV channel Rossia-24.
His comments come days after the leaders of the G7 countries agreed to examine whether price caps could be introduced on Russian oil and gas. With the introduction of a price cap, the major industrialized countries want to ensure that Moscow earns less from the sale of fossil fuels, which would make it less able to finance its war in Ukraine.
Asian markets
But Novak says a fairly large amount of Russian oil and oil products is now sold on Asian markets. According to him, this has enabled oil exports to recover nicely in June. Novak emphasized that he is counting on further recovery this summer. He also indicated that Russia’s role in oil cartel OPEC will remain the same.
Russia is invariably involved as an ally in the Saudi Arabia-led group of countries. There was also another meeting on Thursday. There, representatives of the oil countries confirmed that they will open the oil tap a little further in August. The countries previously agreed to produce more oil in both July and August.
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