Fluctuations in oil production in Russia due to the introduction of the price cap ceiling (price cap) will not exceed the values of spring fluctuations, First Deputy Head of the Ministry of Energy of the Russian Federation Pavel Sorokin is sure, commenting on the statement of the Central Bank experts about a possible shock for the Russian economy due to the introduction of the price cap.
“It is important to note here that the analysis in the publication was prepared with the reservation that the opinion of experts may not coincide with the opinion of the Central Bank.In general, we do not agree that the introduction of a price ceiling is an event that will lead to significant consequences for the Russian economy.Most of the markets are available for our product on adequate market principles and those fluctuations in oil production that are possible are not critical and do not exceed t values of spring fluctuations,” Sorokin cites the Ministry of Energy.
He also noted that global demand for oil and petroleum products is supporting prices, despite the risks of a recession.
“Of course, the risk A recession can add volatility, but the absence of an excess supply of oil on the world market and a clear deficit in certain positions of oil products, such as diesel, support prices,” Sorokin said, adding that one should not forget about the flexibility of the ruble exchange rate in case of oil price fluctuations .
“As for the experts themselves who prepared this report, we invite them to our place so that in the future, when analyzing such events as the introduction of a price ceiling, and related processes, they can use the full set of necessary data” , he emphasized.