Russia will not supply oil to countries setting price caps, will develop own tanker fleet
“The price should be set by the market through supply and demand,” Russian Deputy Prime Minister stressed
Russia will not supply oil to countries attempting to limit the cost of its raw materials through various caps, Deputy Prime Minister Alexander Novak said during the Russian Energy Week forum.
“It is unclear where this figure has come from; they can say whatever they like. The price should be set by the market through supply and demand,” Novak said in a comment on the potential $60 a barrel cap for Russian oil.
“We have made it clear that we will not deliver oil to countries who use the price cap. This is a bad precedent that can be extended at any time to other suppliers, to the entire global trade,” the official said.
The cap for Russian oil could be about $60 per barrel, US Secretary of the Treasury Janet Yellen said on October 12, adding that the US continues to work with its partners to determine the price point.
Russia also intends to boost development of the country’s tanker fleet to carry hydrocarbons, Deputy Prime Minister Alexander Novak said during the Russian Energy Week forum.
“As far as diverting gas exports, we have a plan. By the way, we will boost the production of tankers, the tanker fleet for transportation,” Novak said.
Russia will also develop gas supply infrastructure to Asia, the official said. “First of all, we need to develop new infrastructure for supplying our energy resources to markets where that resource has demand. It is definitely in demand in the Asia-Pacific Region, in India, in Pakistan. The talks we are conducting with these countries show that there is interest in increasing the volume of gas supplies. Therefore, we will develop the relevant infrastructure,” Novak added.
