Russia will stop supplying all energy products to Europe if the EU and its Western allies impose price caps on Russian oil and natural gas, Russian President Vladimir Putin said on Wednesday.
"There are contractual obligations. Will there be any politically-driven decisions that contradict contracts? Yes, we just won't fulfil them. We will not supply anything at all if it contradicts our interests," Putin said at an economic forum in Russia's Far East city of Vladivostok.
"We will not supply gas, oil, coal, heating oil - we will not supply anything," Putin added.
The planned price caps on Russian oil and gas exports is yet another "stupidity," the Russian president said, adding that Europe has made "stupid decisions" and is now trying to figure out how to get away from them.
Last week, the G7 group of the most industrialized nations agreed to finalize and implement a price cap on Russian oil, aiming to reduce Vladimir Putin's oil revenues for his war chest.
Russia, for its part, said it would not be selling its oil to countries that choose to adhere to the price cap and would increase its shipments of oil to Asia after the G7 finance ministers announced a price cap on Russian oil and fuels, to enter into effect from December 5 and February 5, 2023, respectively.
The EU will propose a cap on Russian gas to cut Putin's revenues as part of a wider set of immediate measures to address Europe's energy crisis and help households and industries through the energy market turmoil, European Commission President Ursula von der Leyen said on Wednesday. The proposed measures include a mandatory target for the EU to cut power consumption at peak hours, a revenue cap on electricity producers and fossil fuel companies, and a price cap on Russian gas.
The EU energy ministers are meeting on Friday when they are expected to discuss a price cap on Russian gas and electricity market reforms such as decoupling the price of gas from power prices.
By Charles Kennedy for Oilprice.com
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