If a US-driven plot is successful, a top official believes there may be a suspension of foreign crude sales.
Deputy Prime Minister Alexander Novak said on Thursday that Russia will halt global oil shipments if the West's proposed price restriction makes it unprofitable to continue production.
If the prices they are proposing are less than the expenses of producing oil, Russia will obviously not guarantee the delivery of this oil to the global markets, which implies that we will not operate at a loss, he added, as reported by TASS.
The G7 nations decided to limit the price of Russian oil at the end of June. Washington had first proposed this notion as a way to reduce Russia's profits from energy exports. Bloomberg reports that supporters of the proposal are debating the prospect of lowering the price paid for Russian exports by interfering with the insurance and shipping of the nation's oil. Only raw materials and oil products whose worth does not exceed the price cap would be permitted to be insured and transported, according to the idea.
Fumio Kishida, the prime minister of Japan, recently declared that the price cap's top limit will be set at roughly half the current market price of Russian oil. A barrel of Urals typically cost roughly $87.25 in June. However, there are still open questions and the price cap hasn't been decided.
Russia thinks that the price cap would raise oil prices even more. Recently, President Vladimir Putin claimed that Western nations "are treading on the same rake" by forgoing Russian gas.
Oil prices will increase, he said, and the outcome will be the same.
If the West follows through with the plan, the price of oil may possibly approach $300-400 per barrel, according to Dmitry Medvedev, the deputy chairman of the Security Council.
He forewarned that oil will be substantially less available and more expensive.