Putin warns of ‘serious consequences’ if Russian oil price is capped

Putin warns of ‘serious consequences’ if Russian oil price is capped
Putin warns of ‘serious consequences’ if Russian oil price is capped

“Such actions contradict the principles governing market relations and will most likely lead to serious consequences for the global energy market,” Putin said during a telephone conversation with Iraqi Prime Minister Mohamed Shia al Sudani.

In their conversation, Putin and Sudani addressed the plans of the West and the work of both within the scope of the meetings of the OPEC+ alliance (alliance of oil producing countries, led by Saudi Arabia and Russia), which guarantee the stability of the oil market.

Russia has repeatedly warned that it will not supply crude oil to countries that adopt such limitations, and has predicted major problems for the population of these countries during the winter.

In addition, the Kremlin could also adopt retaliatory measures such as reducing extraction from the current 530 million tons this year to 490 million tons in 2023.

The governments of the European Union failed, on Wednesday, to reach an agreement on the price cap on the price of oil from Russia that the powers of the G7 (group of the seven largest economies in the world) want to impose on Moscow as a sanction for its military aggression against Ukraine.

The maximum price limit does not directly affect the EU, which has already decided to ban purchases of Russian crude from December 5th (except those from the pipeline that supplies Hungary, which is almost entirely dependent on this supply), but it would harm the cargo ships that transport oil from Russia, some of which have Greek, Maltese or Cypriot flags.

At the time, the International Energy Agency (IEA) said that the EU embargo on crude oil and oil products from Russia will increase tension in the market.

Instead, in assessing the proposal to impose a price cap on Russian crude, he considers that “it could ease tensions”.

ANP // APN

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Tags: Putin warns consequences Russian oil price capped

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