Vladimir Putin discusses western oil price cap with Iraqi PM
Russia and Iraq both agreed to the recent OPEC+ decision to reduce oil production due to global recession fears
By News Desk - November 24 2022

(Photo Credit: The Hindu)

On 24 November, Russian President Vladimir Putin discussed western attempts to cap the price of Russian oil during a phone call with Mohammed Shia al-Sudani, the new Iraqi prime minister, according to state news agency TASS.

“Attempts by a number of Western countries to impose restrictions on the price of crude oil from Russia were touched upon,” the Kremlin’s statement said.

The two politicians agreed to approve the joint work of OPEC+ countries, which allows for maintaining stability in the oil market. According to Al-Arabiya news, the leaders also addressed the issue of western attempts to impose a cap on the price of Russian crude oil.

Putin said that this approach contradicts the principles of market relations and is likely to affect the global energy market.

Russia has repeatedly warned that it will not supply crude oil to countries that adopt such measures, predicting a significant crisis for people in Europe during the cold winter months, according to RT.

Moreover, according to the government, it may also adopt retaliatory measures, such as reducing extraction from 530 million tons this year to 490 million tons in 2023.

Meanwhile, Iraq invited Russia to cooperate in joint energy deals and new industry-related projects.

On 23 October, the director of the technical department in the Iraqi Ministry of Oil, Ali al-Ward, discussed the prospects of Russian investment in the Iraqi oil sector and expressed his country’s approval of the recent OPEC+ decision on oil cuts, according to an interview with Sputnik.

Ward, who was hosted at the Russian-Iraqi business forum, congratulated Russia for its experience in the petrochemicals sector and extraction of natural resources, commending the country for its success in this domain.

He explained that Russia’s knowledge in refinancing petrochemicals would be instrumental to Iraq, which imports gasoline and diesel, despite being one of the resource wealthiest countries on the planet.

Ward added that Russia could play a role in extracting Iraq’s gas resources and tapping into the country’s vast reserves.

“Iraq is an important country in gas production, and it must be exploited in the petrochemical industry. I advise involving both the private and public sectors in these investments.”

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