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Japan is unsure if price cap for Russian oil will be efficient — cabinet

However, Tokyo suggested that such a measure would limit Russia's income from oil exports

TOKYO, December 5. /TASS/. Japan is unsure whether the price cap for Russian oil will be efficient, but believes the measure will reduce Russian revenue from oil exports, Japan's Chief Cabinet Secretary Hirokazu Matsuno said a news conference on Monday.

"The introduction of the price cap for Russian oil is designed to reduce Russian revenues and ensure the stability of the oil market," he said. "I can’t talk with certainty about the effectiveness of this measure. However, I believe that it will reduce the price of Russian oil, even when it comes to those countries that haven’t joined the current steps, and this will limit Russia's revenues from energy exports."

The embargo on oil shipments from Russia to the European Union by sea comes into force on December 5. EU member states on Friday also agreed to set a price cap for Russian oil supplied by sea at $60 per barrel. A similar decision was announced by the Group of Seven countries and Australia.

The US, EU and the UK are imposing a ban for their companies to provide transportation, financial and insurance services with respect to tankers carrying oil from the Russia if the price of the commodity exceeds the agreed level.

Russian Deputy Prime Minister Alexander Novak said on December 4 that the country wouldn’t sell oil under a price cap, even if that meant production cuts, as he considers the restriction unacceptable and contrary to the rules of the market and the World Trade Organization.