German MP criticizes "absurd" Russian oil price ceiling
Date
12/25/2022 5:07:02 AM
(MENAFN) Imposing an artificial cap on the price paid for Russian oil will cause prices to rise, said Klaus Ernst, head of the Bundestag's energy committee, in an interview with TASS, calling the plan "absurd."
According to Ernst, Berlin intends to completely forsake Russian energy imports, despite the fact that operations at an oil refinery in the German city of Schwedt are severely dependent on Russian supply.
“It is absolutely clear that when a ceiling is introduced on energy prices, the object targeted by the measure will inevitably reduce the supply. It is clear that this will be counterproductive, because the price will rise,” Ernst claimed. “In this regard, I think that such a restriction is absurd.”
The EU, the G7 nations, Australia, and Norway imposed a $60 per barrel price restriction on Russian seaborne oil earlier this month. The bill prohibits Western corporations from providing insurance and other services to boats carrying Russian oil unless the cargo is purchased at or below the stipulated price. The EU is already discussing a similar move that would target Russian gas supply.
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