Former Russian president Dmitry Medvedev has warned Tokyo’s proposal could push oil prices above $400 a barrel
Tokyo’s proposal to place a cap on Russian oil prices would lead to significantly less oil on the market and could drastically push oil prices higher, former Russian president Dmitry Medvedev warned on Tuesday.
Medvedev responded to Fumio Kishida’s suggestion on Sunday by writing on Telegram that Japan “would have neither oil nor gas from Russia, as well as no participation in the Sakhalin-2 LNG project”If Tokyo accepted the proposal.
“Japanese PM Kishida recently blurted out that the price ceiling for Russian oil would be set at half its current price. Plus, a mechanism will be created that will not allow the purchase of our oil at a price higher than the established one,”This is what the president used to write.
He explained what this meant. “translated from Japanese into Russian,”This would limit oil supply and cause its price to go up. “much higher.”
“In fact, it will be even higher than the predicted astronomical price of $300-400 a barrel. Compare this with the dynamic of gas prices,”Medvedev stated.
During last week’s G7 summit, the leaders of Germany, France, Canada, the US, the UK, Japan, and Italy agreed to explore the feasibility of introducing temporary import price caps on Russian fossil fuels, including oil, citing the ongoing military conflict between Moscow and Kiev.
The Kremlin pointed out that Japan’s proposal for a new measure would need approval from other countries before it could be implemented. Kremlin spokesperson Dmitry Peskov stated on Monday that Kishida’s idea was merely “a single statement only, without any decisions taken.”
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