Russia does not intend to recognize the oil price cap

On December 5, the embargo on Russian oil supplies by sea to the EU, G7 countries and Australia comes into effect. Western countries agreed price cap for Russian oil at $60 a barrel.

Peskov announces retaliatory actions

Kremlin spokesman Dmitry Peskov said on Monday that Russia “does not intend to recognize any ceilings” and vowed to retaliate. “The decision is pending,” he added.

Asked if the embargo would cause oil prices to rise, Peskov said “the price situation will change.” – It is obvious and indisputable that taking these decisions is a step towards destabilizing global energy markets – he assessed.

He stressed that the regulated oil price would not affect the financing and conduct of a “special military operation”, as Russia calls the invasion of Ukraine. “The economy of the Russian Federation has the potential to fully meet all the needs and requirements of a special military operation, and such measures will not affect it,” he said.

– But these actions will certainly affect the stability of the global energy market in terms of its complete destabilization – added the Kremlin spokesman, quoted by the Interfax agency.

Russia threatens to cut off oil supplies

According to the plan, from December, companies from the EU, G7 countries and Australia will be able to provide shipping, insurance, financial and brokerage services related to Russian oil around the world only if it is purchased at a price below a set level, so as to reduce revenues Moscow’s budget and its ability to finance the war against Ukraine.

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Russian Deputy Prime Minister Alexander Nowak announced earlier that Russia does not intend to supply oil and petroleum products to the countries that will join this mechanism and may have to reduce the production of the raw material for this purpose.

Bloomberg and the Financial Times report that in order to evade the sanctions, Russia has managed to build a powerful replacement fleet of tankers to take oil out of the country.

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