Initse-Prime Minister Novak: Russia will not supply oil to countries that will impose a price ceiling Attempts to limit oil prices “will lead to the destabilization of the oil market,” for which European and American consumers will first have to pay, the Deputy Prime Minister warned Alexander Novak Russia will not supply oil and petroleum products to countries that will impose a price ceiling, Deputy Prime Minister Alexander Novak told reporters. “As for price restrictions: if they impose price restrictions, then we are simply for such companies or countries that will impose restrictions, we will not supply them with oil and petroleum products, because we will not work on non-market conditions,” Novak said (quoted by TASS). He called such proposals “complete absurdity” and “interference in market mechanisms”. Attempts to limit oil prices will lead to the destabilization of the oil industry, the oil market, and first of all, European and American consumers will have to pay for it, for whom energy resources have already risen in price, Novak noted. “This will completely destroy the market,” the Deputy Prime Minister warned. The fact that Russia can block oil in the event of a price ceiling was allowed by the head of the Central Bank Elvira Nabiullina at the end of July. Novak at that time called a condition for the termination of supplies the limitation of its value below the cost of production.
In early June, the EU imposed another package of sanctions against Russia, which included a partial embargo on Russian oil. We are talking about a ban on deliveries by sea. The United States refused to import Russian raw materials back in March. Then the G7 countries decided to limit the prices of Russian oil.
According to US Deputy Secretary of State Victoria Nuland, in the event of a complete ban on the import of Russian raw materials, prices for it may rise even more, and then Moscow will be able to earn money by selling to other countries to India or China. The solution should be the introduction of a ceiling on prices for Russian oil, which will not allow it to be sold at a price higher than the established one. “Thus, the Russians will receive a tiny part of the profit, which will pay for their presence on the market,” Nuland noted.
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At the end of July, Reuters, citing a source, reported that the G7 countries were going to set a price limit by December 5, then the EU oil embargo would come into force.
At the end of August, The Wall Street Journal newspaper, citing sources, wrote that the finance ministers of the G7 countries on September 2 at an online meeting intend to present a plan for the introduction of a marginal price for oil and petroleum products from Russia. According to the publication, they want to discuss it by the end of this week, hoping to work out a solution by December.
President Vladimir Putin, speaking about the West’s plans to limit prices, pointed out that Western countries are stepping “on the same rake” as with Russian gas, and warned that prices in this case “will skyrocket”.
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