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Russian Lawmaker Says Price Cap on Russian Oil Will Lead to Explosive Rise of Fuel Prices

© Sputnik / Maxim Bogodvid / Go to the mediabankAn oil pumpjack in Tatarstan, Russia
An oil pumpjack in Tatarstan, Russia - Sputnik International, 1920, 03.12.2022
MOSCOW (Sputnik) - The introduction of a price cap on Russian oil would lead to the explosive growth of fuel prices across the world, the first deputy chairman of the Russian Federation Council's Committee on Economic Policy, Ivan Abramov, told Sputnik on Saturday.
"Consequences of such a decision are obvious: it will lead to a booming demand, disruptions of supply chains and the explosive growth of fuel prices across the globe," Abramov said.
On Friday, the European Union reached an agreement on setting a price cap on Russian oil at $60 per barrel. The agreement reportedly provides for a review mechanism to keep the price cap at 5% below the market value.
Commenting on the EU's price cap, the Russian senator said that it would impact both European households, which will struggle during the cold winter, and European economies, which will "lose all competitive advantages for many years to come."
Russian lower house lawmaker Alexey Chepa told Sputnik on Saturday that Russia has an extensive consumer market and will sell oil only on terms favorable for Moscow.
"Russia will sell oil only if it is profitable. This dictate [of the G7 countries] will only lead to an increase in the cost of prices in global markets. And here the beneficiary of all this is also clear: the United States is behind this," Chepa said.
The G7 nations and Australia issued a statement on Friday, saying they had reached an agreement on the maximum price cap of Russian crude oil to be set at $60 per barrel. The price cap will enter into force on December 5 or very soon thereafter, according to the joint statement. Meanwhile, the price cap on Russian petroleum products developed by the US-led international coalition will take effect on February 5, 2023.
In this photo taken on Thursday, July 14, 2016, Gazprom oil producing facility situated in the Yamal region, Russia - Sputnik International, 1920, 03.12.2022
Russia Confident Demand For Its Oil to Remain Despite Price Cap: Embassy
In September, Russian President Vladimir Putin, commenting on the West's idea to limit prices for Russian energy resources, said Russia would not supply anything abroad if this was contrary to its own interests. Deputy Prime Minister Alexander Novak said Russia would not supply oil to countries that set any price cap.
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