Novak called the introduction of a price cap on Russian oil a “complete absurdity” that destabilizes the entire industry. According to him, Russia will not supply oil and oil products to countries that support the establishment of a price ceiling.
“We simply will not supply oil and oil products to companies or countries that introduce restrictions, because we will not work according to non-market conditions,” said the Deputy Prime Minister.
He pointed out that not a single OPEC country, as well as India and China, supported the idea of introducing a price ceiling on oil from Russia. “We have not heard a single positive response from other oil producers that are in the market for this absurdity that is being considered,” Novak said.
He also stated that Russian companies are prepared for the European Union’s December embargo on the import of Russian oil and can maintain production at the current level. According to the Deputy Prime Minister’s forecast, it may amount to 520-525 million tons by the end of the year. Last year, Russia extracted 524 million tons of oil.
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After Novak’s statement, Lukoil shares rose by more than seven percent, Bashneft shares by more than five percent, Kommersant wrote.
At the end of June, the G7 group of major world economies decided to consider a proposal to introduce an upper price limit in order to limit Russia’s income. On Friday, September 2, G7 finance ministers have the opportunity to assess such a restriction.
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