LAST UPDATE: 13.04
Former Russian President Dmitry Medvedev said on Tuesday that Japan’s proposal to cap the price of Russian oil at about half its current price would lead to significantly less oil on the market and could push prices above 300-400 dollars per barrel, as reported by the Reuters agency.
Commenting on the proposal, which was reportedly made by Japanese Prime Minister Fumio Kishida, Medvedev said that as a result, Japan “will have neither oil nor natural gas from Russia, as well as no participation in the Sakhalin-2 project.
Russian President Vladimir Putin last week signed a decree taking full control of the Sakhalin-2 gas and oil project in Russia’s far east, a move that could force out Shell and Japan’s Mitsui & Co and Mitsubishi Corp to leave.
To remain in the new company that is set to replace the existing operating company, Sakhalin Energy Investment Company, foreign shareholders must within one month request a stake from the Russian government.
Leaders of the Group of Seven (G7) most advanced industrialized nations agreed last week to explore whether it is possible to temporarily set import price ceilings on Russian fossil fuels, including oil, in an attempt to limit Russian resources for financing of the Russian military campaign in Ukraine.
“There will be significantly less oil on the market and its price will be much higher. Even higher than the projected astronomical price of $300-400 a barrel,” Medvedev, who is now deputy chairman of Russia’s Security Council, wrote on social media. .
Source: Capital
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