Russia responds to Japan’s risk — RT World Information

Former President Dmitry Medvedev has warned that Tokyo’s proposed oil worth cap might push crude above $400 a barrel

Tokyo’s proposal to put a cap on Russian oil costs would result in considerably much less oil available on the market and will drastically push oil costs larger, former Russian president Dmitry Medvedev warned on Tuesday.

Responding to the thought put ahead by Japanese Prime Minister Fumio Kishida on Sunday, Medvedev wrote on his Telegram channel that Japan “would have neither oil nor gasoline from Russia, in addition to no participation within the Sakhalin-2 LNG mission” if Tokyo determined to undergo with the proposal.

“Japanese PM Kishida just lately blurted out that the worth ceiling for Russian oil can be set at half its present worth. Plus, a mechanism will probably be created that won’t permit the acquisition of our oil at a worth larger than the established one,” the previous president wrote.

He went on to clarify what this might imply when “translated from Japanese into Russian,” writing that such a transfer would severely restrict the quantity of oil out there available on the market, inflicting its worth to be “a lot larger.”

“In actual fact, it is going to be even larger than the anticipated astronomical worth of $300-400 a barrel. Examine this with the dynamic of gasoline costs,” Medvedev stated.

Throughout final week’s G7 summit, the leaders of Germany, France, Canada, the US, the UK, Japan, and Italy agreed to discover the feasibility of introducing non permanent import worth caps on Russian fossil fuels, together with oil, citing the continuing army battle between Moscow and Kiev.

Nevertheless, because the Kremlin has identified, implementing a measure such because the one proposed by Japan would first require the approval of different international locations. Kremlin spokesperson Dmitry Peskov acknowledged on Monday that Kishida’s concept was merely “a single assertion solely, with none selections taken.”

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