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A Kremlin spokesman said Moscow “would not accept” a price cap on Russian oil exports imposed by the European Union and G7 countries on Friday.File photo courtesy of Hafnia/EPA-EFE
December 3 (United Press International) — On Saturday, the Kremlin rejected an agreement by the European Union and other advanced economies to set a price cap of $60 a barrel for Russian oil exports.
friday eu Ambassador agrees The price cap will apply to seaborne Russian oil. The United States and other G7 countries have taken similar steps.
The move is meant to put more pressure on the West over Russia’s invasion of Russia UkraineWill take effect on Monday –
Russia’s response was swift and difficult.
“We are assessing the situation,” Kremlin spokesman Dmitry Peskov tell a reporter in Moscow. “Some preparations have been made for such a cap. We will not accept a price cap and we will inform you how to organize the work once the assessment is complete.”
The measure was agreed by 27 EU countries, as well as the US, Canada, France, Germany, Italy, Japan, the UK and Australia.
“The price cap policy is designed to maintain the supply of Russian oil to global markets while reducing the Russian Federation’s revenues from oil sales, especially in light of Russia’s choice of war that has resulted in higher prices,” the U.S. Treasury Department said in a statement.
Once the price cap is in place, any importer of Russian oil paying above the cap will have to use the exclusive services of companies outside the EU and G7, which account for only a small portion of the market and are often more expensive and less reliable.
Russia could respond by selling below or below the price ceiling, allowing its oil to flow to global markets at a lower price and benefit from top-notch G7 services. Alternatively, Moscow could choose to sell over the cap and be forced to rely on a handful of non-G7 service providers.
It is not in the Kremlin’s economic interest to choose to reduce sales, not least because doing so would mean reducing sales to emerging market allies.
president of ukraine Volodymyr ZelenskyHowever, the price cap was criticized on Saturday as “weak”.
“Russia’s deliberate destabilization of energy markets has already caused huge losses to countries around the world,” he said. his nightly addressadding that “it is only a matter of time before more powerful tools must be used.”
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