Russia threatens to cut oil supply to those who limit the price

The Kremlin has responded to the idea of ​​setting a price limit for Russian oil by threatening to cut off supply to the country that adopts it. Moscow has described the measure as “absurd”and assure that “Russia will not supply energy resources to the countries that support this initiative”, declared its deputy prime minister, Alexander Novak.

“In my opinion, this is complete nonsense,” RIA Novosti quotes Novak, who has thus commented on the proposal that the United States will make to the G7 countries to present a plan to limit the prices of Russian oil. He has argued that if price restrictions are introduced, Russia will not supply oil, “because we will not work in non-market conditions“.

For the Russian deputy prime minister, the proposal is a interference in the market mechanisms of the oil industry, which according to him “is the most important to guarantee the world’s energy security”. “Such measures only destabilize the industry and the market,” Novak stressed.

Lastly, Novak has pointed out that if such a measure is carried out, the first to suffer consequences would be “European and American consumers, who they already pay high prices today because of the destabilizing factors they accept. In particular, the sanctions restrictions,” the deputy prime minister concluded before Russian journalists.

The effects of the Russian oil embargo on the economy

The US trusts the measure

The proposal to set a limit price for Russian oil came out of a meeting on Wednesday between US Treasury Secretary Janet Yellen and her British counterpart, Nadim Zahawi. Both have been satisfied with the progress made by the G7 negotiating teams to agree on a limit on oil prices from Russia.

Yellen believes that this measure will reduce the income that Putin “needs” to continue the war in Ukraine, while reducing the pressure of energy prices on citizens.

The finance ministers of the G7 countries (USA, Germany, France, the UK, Italy, Canada and Japan) they will discuss the idea on Friday to prevent the Kremlin from accumulating large revenues as the price of a barrel of crude rises.


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