A Russian minister warned on Wednesday that the European Union’s plan to impose a price cap on Russian oil under new sanctions on the country for its war against Ukraine could have a “harmful effect” on global oil markets.
“Such a device disrupts all market mechanisms and can have a very harmful effect on the global oil industry,” Deputy Prime Minister Alexander Novak told Russian state television.
The minister also warned that Russian Companies will not supply oil to countries that try to impose such caps.
Last month, during its meeting, the G7 decided to impose such a price cap on Russian oil to limit its oil revenues. The idea was shelved after protests by some members.
Also, in order to raise the global crude oil prices, OPEC countries decided to Big cut in oil production,
OPEC+ has agreed at a meeting in Vienna to cut production by 2 million barrels per day starting in November.
The production cuts are a significant change in the Coalition’s production policy, which saw production cut by a record 10 million barrels per day in early 2020 as demand fell due to the Covid-19 pandemic, but was gradually reining in those cuts. There was a boom and production was increasing after that.
On gas supplies to Europe, after a recent leak, Novak said Moscow is ready to quickly supply gas to Europe through a damaged section of the Nord Stream 2 pipeline connecting Russia and Germany.
“If necessary legal decisions are made regarding certification (of Nord Stream 2) by European partners … I think that Russia can provide a reasonable supply through this gas pipeline in a short time,” said the Russian minister .
Russia is also seeking to join the investigation into last week’s explosions at Nord Stream gas pipelines under the Baltic Sea.
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