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Overseas crude gross sales may very well be suspended if US-driven scheme succeeds, high official says
Russia will cease international oil exports if the West’s proposed value cap makes it unprofitable to proceed manufacturing, Deputy Prime Minister Alexander Novak advised Russia’s Channel One on Thursday.
“If these costs which they’re speaking about are decrease than the prices for oil manufacturing… naturally, Russia won’t guarantee the availability of this oil to the world markets, which signifies that we merely won’t work at a unfavorable revenue,” he defined, as cited by TASS.
The G7 international locations agreed to set a cap on the worth of Russian oil on the finish of June, an concept which had first been pitched by Washington as a method to restrict Russia’s earnings from vitality exports. In response to Bloomberg, proponents of the measure are discussing the opportunity of limiting the worth paid for Russia’s exports via interventions within the insurance coverage and transportation of the nation’s oil. In response to the plan, solely these uncooked supplies and oil merchandise whose worth doesn’t exceed the worth cap can be allowed to be insured and transported.
Japanese Prime Minister Fumio Kishida lately mentioned that the higher threshold for the worth cap can be set at about half the present market value of Russian oil. In June, the typical value of a barrel of Urals was round $87.25. Nonetheless, discussions on the matter are ongoing and the worth cap has not but been finalized.
Russia believes that the worth cap would additional propel international oil costs. President Vladimir Putin lately mentioned Western international locations “are stepping on the identical rake,” as within the case of abandoning Russian gasoline.
“The end result would be the similar – oil costs will skyrocket,” he mentioned.
Safety Council Deputy Chairman Dmitry Medvedev predicted that the price of oil might properly exceed $300-400 per barrel if the West goes via with the plan.
“There shall be considerably much less oil available on the market, and its value shall be a lot increased,” he warned.
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