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If Japan's price ceiling concept is adopted, according to Medvedev of Russia, oil prices might rise to $300-$400

Image: Reuters Berita 24 English -  Dmitry Medvedev, a former president of Russia , stated on Tuesday that a rumoured Japanese plan to cap t...


Image: Reuters

Berita 24 English -  Dmitry Medvedev, a former president of Russia, stated on Tuesday that a rumoured Japanese plan to cap the price of Russian oil at roughly half its current level would result in a major reduction in the amount of oil available on the market and may raise prices above $300-$400 per barrel.

According to reports, the plan was initially forth by Prime Minister Fumio Kishida. In response, Medvedev stated that Japan "would have neither oil nor gas from Russia, as well as no involvement in the Sakhalin-2 LNG project."

The Sakhalin-2 gas and oil project in Russia's far east is now fully under the hands of President Vladimir Putin, who last week signed an order that could push out Shell and the Japanese firms Mitsui & Co. and Mitsubishi Corp.

Foreign shareholders must request a stake from the Russian government within one month in order to continue holding shares of the new company that will replace the current operational company, Sakhalin Energy Investment Company.

In an effort to restrict Russian resources used to fund its military operation in Ukraine, the G7 leaders decided last week to investigate the viability of enacting temporary import price limitations on Russian fossil fuels, including oil.

"Oil supply will be greatly reduced, and its price will increase significantly. Additionally, above the stratospheric price of $300–400 per barrel that was forecasted, "Medvedev, who is currently Russia's vice-president of the Security Council, posted on social media.

A Kremlin spokeswoman stated on Monday that other nations might not agree with the suggestions to set a cap at roughly half the present price for Russian oil.

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