A Russian government official has warned that South Korea will face serious economic consequences if it joins a U.S.-led proposal to impose a price cap on Russian oil.

In an interview with Russia’s state-owned Sputnik news agency on Wednesday, the head of the Russian foreign ministry’s First Asian Department, Georgy Zinoviev, said Moscow is aware of Washington's effort to secure Seoul's participation in what he called “a buyers’ cartel” to cap the price of Russian oil.

Asserting that Russia will not provide oil while incurring losses, the department head explained that any compliance with the initiative will result in a price hike in crude oil for South Korea, likely significant.

Zinoviev said he hopes Seoul comprehends its position and will not cause unnecessary problems for its own sake.

Meanwhile, the director also said in the interview that Russia is ready to resume providing oil and petroleum products to North Korea if Pyongyang requests it.