Russia will stop oil supplies to countries that will limit its cost
Russia will not supply oil and oil products to those countries that regulate the price limit for these products, since non-market mechanisms are used, announced by Russian Deputy Prime Minister Alexander Novak, transfer RIA Novosti agency.
“It’s just that for such companies or countries that impose restrictions, we will not supply oil and oil products, since we will not work on non-market conditions,” he said.
In his opinion, the limit on Russian oil prices is “complete absurdity”, its implementation could destabilize the entire population, as a result of which oil prices will rise, and EU and US consumers will suffer from this.
Earlier, The Wall Street Journal reported that the finance ministers of the G7 countries are planning to hold an online meeting on Friday, where they can agree on a plan to limit the price of oil and oil products from Russia.
This plan provides for a ban on financing and insurance of Russian oil risks if they meet at the price indicated above by the G7 member countries. At present, there are large reserves of supplies from Russia, but its oil equipment is very small.
The talks of the G7 countries on limiting prices for Russian oil became known in the near future. As Bloomberg wrote then, Western countries estimate the range from $40 to $60 per barrel, which will be higher than the cost of oil production, i.e. Russia will be stimulated to conduct it. At the same time, the administration of US President Joe Biden believes that $40 is too low and convenient to look for the next jump in oil prices due to the proposal of possible proposals. As noted in late July by Reuters, the G7 is a new mechanism by early December, when the EU embargo on the supply of Russian oil by sea comes into force.
The decision to limit prices for Russian oil causes an imbalance in the market and an increase in quotations. Analysts at the US bank JPMorgan Chase & Co report that oil prices may rise to $380 per barrel.
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