Former President Medvedev

The Group of Seven seeks to ban all services that secure the maritime transportation of Russian oil and oil products globally unless the hydrocarbon is purchased at or below a certain price.

The former president of Russia, Dmitry Medvedev, warned on Tuesday about the adverse effects that the Group of Seven (G7) plan to impose  price caps on Russian crude would have . In particular, he reacted to the words of Japan’s Prime Minister Fumio Kishida, who said last Sunday that Russian oil price caps will be set  at half  their current level.

According to Medvedev, who currently holds the position of vice president of the Russian Security Council, this step, as well as the creation of a mechanism that prevents the purchase of Russian crude at a price higher than the stipulated price, would have a negative impact on the world economy and particularly on the Japanese.

« There will be much less oil on the market , while its price will be much higher. It will be located above an astronomical price of  300-400 dollars . Compare it to the dynamics of gas prices. Japan  will have neither oil nor gas supplied from Russia . It would also lose its participation in the Sakhalin-2 liquefied natural gas project,” Medvedev wrote on his Telegram channel, before signing off with ” Arigato!  (‘thank you’, in Japanese).

The final communiqué of the G7 summit held at the end of June indicates that its members are considering “a set of approaches”, including the possibility of  banning all services  that ensure the maritime transport of Russian oil and its oil products globally. unless the hydrocarbon is purchased at a certain price or below a ceiling. The group’s leaders stressed that this limit  has yet to be agreed upon  in coordination with their international partners.

Last week it was reported that the members of the group are  close to reaching an agreement  on price caps on Russian oil with the aim of limiting the amount of money that Moscow can earn for each barrel it sells on the global market. The pact would also seek to  stabilize markets by  ensuring that Russian crude continues to reach consumers around the world, even as Western governments increasingly impose import bans on their countries.

Meanwhile, forecasts by analysts at the financial conglomerate JPMorgan Chase & Co point out that world oil prices could reach  around $380 per barrel  if Western countries apply new economic sanctions against Russia.