German finance minister to suggest EU adopts Russian oil price cap

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The decision to impose price caps on Russian oil was adopted unanimously at a virtual meeting of G7 finance ministers and central bank leaders, on September 2nd, at the informal meeting of the Economic and Financial Affairs Council (ECOFIN). 

On September 9th, German Finance Minister Christian Lindner suggested that he was going to call on the EU member states to support the Russian oil price cap decision.

Before the ECOFIN conference in Prague, Lindner stated "I will be inviting all members of the EU to support the idea of an oil price cap in the G7 context, we reached an agreement that we are supportive of an oil price cap. We want to avoid higher revenues for Russia, and we want to secure, to maintain the price level for our economies, and one favorable mean is the oil price cap, and it is more effective when more member states of the EU support this idea."

EU chief Ursula von der Leyen proposed that the bloc's 27 nations agree on placing a price cap on Russian gas imports.

Von der Leyen's decision comes as a means of imposing further sanctions on Russia as the West looks for more means of punishing the country over the war in Ukraine.

"The objective here is very clear. We must cut Russia's revenues which (Russian President Vladimir) Putin uses to finance this atrocious war against Ukraine," the president of the European Commission told reporters. 

Russian President Vladimir Putin said on Wednesday that Russia will stop supplying oil and gas to countries that impose price ceilings.  

Capping prices, as some Western countries are considering, "would be an absolutely stupid decision," Putin told the Eastern Economic Forum in the Pacific port city of Vladivostok.    

"We will not supply anything at all if it is contrary to our interests, in this case economic (interests)," he said. "No gas, no oil, no coal, no fuel oil, nothing."   

Nord Stream as energy weapon is "nonsense" - Putin

Accusations by Western countries that Russia is allegedly using the Nord Stream 1 gas pipeline as an energy weapon are nothing but nonsense, Russian President Vladimir Putin on Wednesday.

"Nord Stream 1 is practically closed now. Everyone says: 'Russia uses energy weapons.' This is another nonsense. What kind of weapons do we use?! We supply as much as our partners need: as much as they place an order," Putin said at the plenary session of the Eastern Economic Forum (EEF).

The president noted that Ukraine and Poland, through the territories of which Russia supplies gas to Europe, closed the gas pipelines on their own, adding that these were their decisions.

"Give us a turbine, we will launch Nord Stream 1 tomorrow. They do not give anything," Putin said.

Nord Stream 2 gas pipeline to be switched on once needed

The Nord Stream 2 gas pipeline was not built in vain, and "if necessary, please, we will turn it on," Russian President Vladimir Putin said on Wednesday.

"No, we are not building anything in vain. We have received the appropriate technologies, we have worked them out. If necessary, please, we will turn on Nord Stream 2," he said at the plenary session of the Eastern Economic Forum (EEF), answering whether Nord Stream 2 had been built in vain.

It is worth noting that gas supplies via Nord Stream have completely stopped since August 31 and the operation of the pipeline has been suspended due to scheduled maintenance work at the Portovaya compressor station, data from gas transportation system operators showed.

A leak was detected at the main gas turbine at the Portovaya compressor station near St. Petersburg.

Previously, Gazprom said gas would continue to flow on Saturday after a different turbine repair was required. However, Western sanctions have made it difficult for the energy company to pursue its maintenance routine.