Russian oil price cap fraught with deficit, that's common truth - Putin

MOSCOW. Oct 12 (Interfax) - The Russian oil price cap is fraught with deficit, that is a commonly known truth, Russian President Vladimir Putin said at a plenary meeting of the Russian Energy Week.

"If you want to create a shortage of tomatoes, for example, just pass a law that retailers can't sell tomatoes for more than two cents per pound. Instantly you'll have a tomato shortage. It's the same with oil or gas," Putin quoted U.S. economist, Nobel Prize winner Milton Friedman as saying.

"Please note that Milton Friedman passed away in 2006. He had nothing to do with the Russian government and can definitely not be described as a Russian agent of influence. It would seem this is a copybook maxim, but the leaders of some countries, the bureaucratic elite, brush these obvious considerations aside. On someone else's command, they deliberately begin to de-industrialize their countries and lower the quality of life of their citizens," Putin said.

"It must be clearly understood that a price cap on oil from Russia or other countries, alongside any artificial price restrictions will unavoidably deteriorate the investment climate in the entire global energy sector. Then, it will provoke a stronger global energy deficit and further price growth. That would deal a blow to the poorest countries first and foremost," he said.

"Interventions of any kind or the unblocking of oil reserves will not save the day, as there are simply no available resources in the required amounts," Putin said.

Putin repeated that Russia would not be supplying oil to countries who apply the oil price cap. "We will not be acting to our detriment," he said.

The stability and balance of energy markets could be achieved by combined efforts, and this very kind of dialogue has been established with OPEC+ partners, Putin said.