Moscow will stop selling oil to countries that impose price caps on its energy resources, Kremlin spokesman Dmitry Peskov said today, noting that they would lead to significant destabilization of the global oil market.
“Companies that impose a price ceiling will not be among the recipients of Russian oil,” Peskov noted, echoing comments made yesterday Thursday by Russian Deputy Prime Minister Alexander Novak.
Peskov also noted that the reliability of the Russian natural gas pipeline Nord Stream 1 is threatened as only one turbine is operating at the main compression station.
The supply of natural gas through Nord Stream 1 to Germany was reduced to one-fifth of the pipeline’s capacity and completely stopped on Wednesday for three days of maintenance work which is expected to end on Saturday.
Russia has cited faulty equipment or delays in the delivery of equipment as the main reason for the reduction in deliveries through Nord Stream 1.
Group of Seven (G7) finance ministers are expected to meet today via video conference and finalize plans to impose a price cap on Russian oil markets in a bid to cut Russia’s revenues.
The EU earlier this year imposed a partial ban on purchases of Russian oil, which Brussels says will cut off 90% of Russian exports to the European bloc when it takes full effect.
European Commission President Ursula von der Leyen also said today that the time has come for the EU to consider imposing a similar price ceiling on Russian natural gas markets.
Peskov noted that European citizens are paying the price for such moves. These measures were taken in response to Russia’s invasion of Ukraine.
“Energy markets are at a fever pitch. This is particularly the case in Europe, where anti-Russian measures have led to a situation in which Europe is buying liquefied natural gas (LNG) from the US for much more money — unreasonable money. US companies are becoming richer and European taxpayers poorer,” Peskov noted.
Russia is considering how capping oil export prices might affect its economy, he continued.
“One thing can be said for sure: such a move will lead to significant destabilization of oil markets,” he concluded.
With information from AMPE
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.