German MP blasts 'absurd' price cap on Russian oil – media

Imposing an artificial ceiling on the price paid for Russian oil will provoke an increase in prices for the commodity, the chairman of the Bundestag committee on energy, Klaus Ernst, said in an interview with TASS, calling the measure “absurd.”

Berlin is planning to entirely abandon energy imports from Russia, according to Ernst, who stressed that the operations at an oil refinery in the German city of Schwedt are critically dependent on Russian supplies.

“It is absolutely clear that when a ceiling is introduced on energy prices, the object targeted by the measure will inevitably reduce the supply. It is clear that this will be counterproductive, because the price will rise,” Ernst argued. “In this regard, I think that such a restriction is absurd.”

The price limit on Russian seaborne oil, set at $60 per barrel, was introduced earlier this month by the EU, the G7 countries, Australia and Norway. The measure bans Western companies from providing insurance and other services to vessels loaded with Russian oil, unless the cargo is bought at or below the price indicated. The EU is currently debating a similar step targeting Russian gas supplies.

According to Ernst, the policies pursued by Brussels are “self-destructive.”

“The EU deliberately excluded pipeline oil supplies from sanctions. The government rejects them, although there is no need for this,” he said, adding that such policies are “leveled against” ordinary consumers across the bloc.

For more stories on economy & finance visit RT's business section