Ex-Foreign Minister of Austria called the negative consequences of the oil price ceiling

VLADIVOSTOK, 7 Sep — PRIME. The introduction of a price ceiling for Russian oil by the G7 countries could lead to distortions in the economy, former Austrian Foreign Minister Karin Kneissl told RIA Novosti.

“The introduction of a price ceiling, in my opinion, does not meet the logic of the supply-demand categories. While they are trying to limit supply or reduce it, the price will rise again. This will lead to distortions,” she said at the Eastern Economic Forum in Vladivostok.

The former head of the Austrian Foreign Ministry noted that she does not quite understand the logic of those who are trying to interfere in market processes. She stressed that oil is a global commodity on the world market, and that there will always be ways to extract it and sell it for a certain price.

The leaders of the G7 countries (Great Britain, Germany, Italy, Canada, the USA, France and Japan) at the summit on June 26-28 confirmed their intention to reduce dependence on energy from Russia and tentatively agreed to start limiting prices for Russian oil and gas. At the beginning of July there were proposals to set the limit at half the current price. According to Bloomberg, figures of $40-60 are being discussed.

The WEF takes place on September 5-8 on the campus of the Far Eastern Federal University on Russky Island in Vladivostok. RIA Novosti acts as the general media partner of the forum.