Russia will not provide oil to international markets if a price cap is imposed: Deputy PM

As the military conflict continues unabated between Moscow and Kyiv, with the repercussions of the war being felt globally, Kremlin leader Alexander Novak stated that Russia won't provide oil to international markets if price caps are negotiated by the Group of Seven nations end up being less than the cost of production. While speaking to Channel One on Wednesday, the Russian Deputy Prime Minister said, “If these prices spoken about are lower than costs of producing oil,... Russia will definitely not provide for supplies of such oil to international markets,” TASS reported. Novak further asserted that the nation would not be going to function at a loss. 

Apart from this, the President of Russia, Vladimir Putin warned the West by stating that its intention to cap the prices of Russian oil as part of its sanctions over Ukraine would destabilise the global oil market and drive-up costs. 

Russian oil supply

Furthermore, President Putin stated on Tuesday, July 19, that the decline in the supply of Russian natural gas to European consumers is entirely the responsibility of the West and issued a warning that it may continue to recede. Putin's remarks mounted pressure on the European Union, which worries that Russia may turn off gas to Europe in the winter to trigger economic and political mayhem, Associated Press reported.  

Meanwhile, earlier, the press secretary for Vladimir Putin, Dmitry Peskov disclosed that gas supplies to nations who disregarded the new rules of paying for gas delivery in rubles were suspended. According to a TASS report, Peskov told the media on June 9 that Russia has no plans to halt gas supplies. He said that the new system, which adheres to Vladimir Putin's directive, is in effect for countries that still import gas from Kremlin. 

It is pertinent to note that due to their inability to make payments in rubles, Denmark, Finland, Poland, the Netherlands, and Bulgaria no longer receive gas from Russian energy behemoth Gazprom. On March 31, Putin stated that "unfriendly countries" would have to pay in rubles beginning on April 1 in order to purchase Russian gas. 

The European Union authorised sanctions on most Russian oil and coal which would be in effect later this year since Russia initiated its "special military operation" on February 24, but somehow it did not include natural gas since the 27-nation bloc relies on it to run factories, produce electricity, and heat homes. 

However, Russia's Gazprom reduced gas supplies via the Nord Stream 1 pipeline to Germany by 60% last month, referring to mechanical issues after a turbine that Siemens had shipped to Canada for maintenance couldn’t be returned because of sanctions, as per the Associated Press report.  

(Image: AP)