Moscow: A ceiling on energy prices would be a disaster for the West

"A ceiling on energy prices would be a disaster for the West"

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Russia warned the West today that plans to try to cap the price of Russian oil and gas exports in response to the war in Ukraine will fail and ultimately destabilize the United States and its allies.

Shortly before the European Union announced a cap on the price of Russian gas yesterday, Wednesday, Russian President Vladimir Putin threatened to cut off supplies if such limits were imposed, warning the West that it would freeze like the 'wolf's tail' in a Russian fairy tale .

The Group of Seven major industrialized countries want to impose a ceiling on the price of oil, which has yet to be defined.

Russian Foreign Ministry spokeswoman Maria Zakharova said Westerners did not understand that such measures would ultimately affect their own countries.

"The West as a whole does not understand: imposing a ceiling on the prices of Russian energy resources will lead to a slippery slope under its own feet," Zakharova said.

The chairman of the State Duma, Russia's lower house, said today that the West's plans will fail and that prices will soar well beyond the artificially attempted price ceiling.

"What G7 state officials call a price 'ceiling' will become a price 'floor,'" Vychislav Volodin, the Duma's speaker, wrote on his channel on the Telegram app.

"The global market is not limited to seven countries," he said.

Western efforts to punish the world's largest producer of natural resources, from oil and gas to gold, metals, coal and timber, are no easy feat, particularly when China, India and other consumers continue to they buy them.

Selling oil and gas to Europe is one of Russia's main sources of foreign exchange earnings after Soviet geologists discovered oil and gas in the Siberian marshes after World War II.

Russia is the world's second largest oil exporter after Saudi Arabia, which is the world's largest natural gas exporter. Europe typically imports about 40% of its gas and 30% of its oil from Russia.

Since the war began, European Union member states have pledged to reduce their dependence on Russian energy, while Russia has cut or cut off supplies to three of its biggest gas pipelines to the West.

Russian President Putin says that if Western countries want to distance themselves from Russian energy, he will send it east to major economies such as China and India.

Source: RES-EAP