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Price cap on Russian oil would be ‘detrimental’ to global markets: Russian minister

Iran seizes US cargo on oil tanker over sanctions: judiciary
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Russia warned Wednesday that a potential price cap on Russian oil — proposed by the European Union as part of new sanctions over Ukraine — would have a “detrimental effect” on global markets.

“Such a tool disrupts all market mechanisms and can have a very detrimental effect on the global oil industry,” deputy prime minister Alexander Novak told Russian state television.

Novak said Russian companies would “not supply oil to those countries” that introduce such a cap.

Novak, who attended a meeting of the OPEC+ group of major oil exporters in Vienna, spoke after the EU suggested introducing an oil price cap and ban in a new round of sanctions over President Vladimir Putin’s Ukraine offensive.

The G7 last month called for “urgently” putting a price cap on Russian oil to limit Moscow’s revenues that finance its Ukraine offensive.

OPEC+ agreed on a major cut in production on Wednesday, a move that could raise crude prices.

Novak also said Moscow was ready to quickly supply gas to Europe through an undamaged section of the Nord Stream 2 pipeline between Russia and Germany, after recent leaks heightened geopolitical tensions.

“If the necessary legal decisions are made by European colleagues regarding (Nord Stream 2’s) certification … I think Russia in a short period of time could provide appropriate supplies through this gas pipeline,” the Russian minister said.

He called for an “objective investigation” in the Nord Stream leaks.

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Agence France-Presse (AFP) is a French international news agency headquartered in Paris, France. Founded in 1835 as Havas, it is the world's oldest news agency.







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