U.S. sanctions on Iran's oil industry are unproductive and there will be consequences to such a move, Russian Energy Minister Alexander Novak told CNBC. "Our position remains that this is unproductive, this is wrong," Novak said when asked about the possible impact U.S. sanctions on Iran's oil industry could have. "It is better to continue working in the market, Iran being just another exporter that provides stable supplies to the market," Novak said, speaking to CNBC's Geoff Cutmore at the Eastern Economic Forum (EEF) last week in Vladivostok, Russia. "It is one of the richest in resources and has a solid standing in terms of its energy capability both in the OPEC, and in the energy markets as a whole. So, I think there will be consequences, I am sure, but we could only comment once they are in place," he said.

Sanctions are due to be re-imposed on Iran's oil industry on November 4. The move comes after President Donald Trump decided to withdraw the U.S. from an international nuclear deal in May. The U.S. has said that any countries or companies that conduct transactions with Iran are liable to face secondary sanctions. Needless to say, the move is expected to severely impact Iran's oil industry and exports, with a production decline of over a million barrels a day -- and likely upward pressures on oil prices -- a distinct possibility, according to analysts. Novak told CNBC that it was difficult to comment on the consequences of Iranian sanctions as he was still waiting to "learn the legal particulars" and effects of the sanctions.

Oil wells on Kharg Island in the Persian Gulf, off the coast of Iran. Kaveh Kazemi | Getty Images