MOSCOW, November 29. /TASS/. Russia will not supply oil to countries under the terms of the price cap, even if it would be more profitable, Russian Deputy Prime Minister Alexander Novak said at the 4th Russian-Chinese Energy Business Forum.
"This is generally unacceptable from the point of view of concluding contracts. We will work according to the market [conditions]," he said. Novak stressed that Russia does not plan to soften its position on this issue.
Currently, Russia supplies oil to a number of countries with a significant discount, which fluctuates around $20 to the price of Brent oil.
He added that the initiative of Western countries to introduce a price cap on Russian oil carries huge risks, including the risk of a shortage of energy resources. "The most recent restrictions, the choices to implement price caps - all of these acts pose significant threats to the industry's operation, causing a lack of energy resources and investment in the sphere, and not just in the oil industry. This will have an impact on any trade commodity for which Western countries wish to impose their own rules," he said. Novak stressed that Western sanctions against energy supplies are ill-considered.
The G7 finance ministers have stated their intention to impose a price cap on Russian oil. They intend to accomplish this by forming a "wide international coalition" and prohibiting the provision of any services for the maritime transportation of Russian oil if it is sold at a price greater than the limit agreed upon the coalition. This ruling is likely to go into effect on December 5. Last week, the European Commission recommended capping Russian oil prices at $65-70 per barrel, which Poland and the Baltic countries opposed. Greece, Cyprus, and Malta, all of which rely on tanker traffic, want a bigger cap or some type of compensation.