MOSCOW, September 5 – PRIME. Restricting prices for Russian oil will cause a shortage of this energy resource on the world market and an even greater rise in prices, talk about this is nothing more than political profanation, Pavel Zavalny, chairman of the State Duma Committee on Energy, told RIA Novosti.
G7 finance ministers on Friday confirmed their intention to impose price caps on Russian oil as part of the expansion of sanctions.
“Now all Western politicians are distinguished by populism, in my opinion, this is from this series – political populism. I do not believe in this idea. Because it does not matter whether it is the world economy, energy or a single country, region or municipality, as soon as you If you start regulating prices for something in the conditions of market pricing, you create either a deficit for these products or their complete disappearance from the shelves. This fully applies to oil,” Zavalny said.
The MP noted that the introduction of price restrictions is considered by the West as a possible alternative to the embargo on its import, which should come into effect from December 5. “They are trying to come up with this mechanism as an alternative to a full embargo on oil supplies. Realizing that they cannot refuse oil and oil products, they are trying to change it for a softer mechanism for controlling and regulating prices,” he said.
However, if such a decision is made, Russia will not trade oil at a loss, and European countries will still have to buy this oil from other suppliers, but at higher prices, and the market will be unbalanced. “Therefore, this action is a political profanation, and nothing more,” the deputy believes.
At the same time, he is not a supporter of the introduction of any minimum prices for the supply of Russian oil abroad. “We must work in the market, supply those who buy from us, at the prices that the market forms, or within the framework of long-term contracts, we form the price for the supply of oil and oil products. First of all, work with friendly countries,” he explained Zavalny.
Balancing the market, according to the head of the relevant committee, is necessary as part of the OPEC+ deal. “The only thing is that, perhaps, the planning horizon will no longer be the same as it is now. In order to balance the market, it may be necessary to meet more than once every six months, but to regulate the volume of oil production within OPEC+ on a monthly basis,” Zavalny said.