MOSCOW, December 8. /TASS/. The introduction of a price cap on Russian oil by Western countries will not lead to major consequences for the country’s economy, First Deputy Energy Minister Pavel Sorokin told reporters. The majority of markets remain available due to normal market conditions, while fluctuations in oil production are not critical, he said when commenting on a statement by the Central Bank’s experts about a possible shock to the Russian economy due to the price cap introduction.
"It should be noted here that the analysis presented in the publication contained a remark saying that the opinion of experts may not coincide with the regulator’s view. Overall, we do not share the opinion that the introduction of a price cap is an event that will lead to major consequences for the Russian economy," he said.
"Most markets are available for our oil based on adequate market principles, while any fluctuations in oil production that may occur, are not critical and will not exceed those registered in the spring," the official added.
The global oil market is currently experiencing a deficit of supply, particularly of diesel, which supports the price, Sorokin noted.
"Of course, the risk of a recession may add volatility, though the lack of oil oversupply globally and a distinct deficit of separate items of petroleum products, for example, diesel, support the prices," he said.
The First Deputy Minister also noted the flexibility of the ruble’s exchange rate in the event of oil price fluctuations.
On December 5, an embargo on maritime Russian oil shipments to the European Union was enforced. Moreover, EU states also agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel last Friday. A similar decision was announced by the G7 and Australia. Moreover, western countries have banned their companies from providing transport, financial and insurance services to tankers carrying oil from Russia at a price above the agreed-on ceiling.