Putin has warned of dire consequences if Russia controls crude oil prices

Russian President Vladimir Putin warned on Thursday that there would be “severe consequences” if Western powers introduced controls on oil prices from Russia.

“Such actions are contrary to the principles governing market relations and will have serious consequences for the global energy market,” Putin said during a telephone conversation with Iraqi Prime Minister Mohammad Shia al-Sudani.

In their conversation, Putin and Sudan highlighted the plans of Western countries and the work of both within the framework of the meetings of the OPEC+ alliance (an alliance of oil producing countries led by Saudi Arabia and Russia), which guarantees the stability of oil. market.

Russia has repeatedly warned that it will not supply crude oil to countries that adhere to such limits, and has predicted major problems for the people of these countries this winter.

In addition, the Kremlin could take retaliatory measures such as cutting extraction this year from the current 530 million tons to 490 million tons in 2023.

European Union governments on Wednesday failed to reach an agreement on a price ceiling on oil prices from Russia, which the G7 (group of the world’s seven largest economies) powers want to impose on Moscow. Authorization for military aggression against Ukraine.

The maximum price limit will not directly affect the European Union, which has already decided to ban the purchase of Russian crude oil from December 5 (except for the pipeline supplying Hungary, which is almost entirely dependent on this supply), but it will harm the cargo. Ships carrying oil from Russia, some of them have Greek, Maltese or Cypriot flags.

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At the time, the International Energy Agency (IEA) said the European Union’s embargo on crude oil and oil products from Russia would increase tensions in the market.

Instead, in assessing the plan to impose a price cap on Russian crude, he thinks “it will reduce tensions.”

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