Russia, the world’s second-biggest oil exporter, will not sell oil subject to a Western-imposed price cap, even if that means cutting production, Russian President Vladimir Putin’s energy envoy has said.
The Group of Seven major economies, the G7, and Australia agreed on Friday to set a price cap of $60 a barrel for Russian seaborne crude oil after European Union (EU) members overcame resistance. from Poland.
The West’s decision to ban shipping, insurance and reinsurance companies from handling Russian oil cargoes above the limit is an attempt to punish Putin for the conflict in Ukraine.
Russian Deputy Prime Minister Alexander Novak said on Sunday that the Western move was gross interference that contravened free trade rules and would destabilize global energy markets by causing a supply shortage.
“We are working on mechanisms to prohibit the use of a price cap instrument, regardless of the defined level, because such interference could further destabilize the market,” said Novak, a Russian government official in charge of the oil, gas, atomic energy sector. and coal.
“We will only sell oil and derivatives to those countries that will work with us under market conditions, even if we have to reduce production a little bit,” he added.
Source: CNN Brasil
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