Russia refuses to accept EU’s oil price cap

Russia refused to accept a price cap on Russian oil which European Union along with G7 and others have set a deal for a USD 60 per barrel, Kremlin Spokesman Dmitry Peskov said.

Kremlin Spokesman Dmitry Peskov said, “We are assessing the situation. Certain preparations for such a cap were made. We won’t accept the price cap and we will inform you how the work will be organized once the assessment is over.” On Friday, European Union countries agreed to cap the price of Russian seaborne oil at USD 60 a barrel.

The president of the European Commission, Ursula von der Leyen said, “The EU agreement on an oil price cap, coordinated with G7 and others, will reduce Russia’s revenues significantly. It will help us stabilise global energy prices, benefitting emerging economies around the world.” Leyen also shared the video on her Twitter account in which she said, “As you know the EU and other major G7 partners will have a full import ban on Russian seaborne oil as of December 5. But we need to ensure that emerging and developing countries continue to have access to some Russian crude oil at limited prices and thus, today the EU the G7 and other global partners have agreed to introduce a global price cap on seaborne oil from Russia.”

Talking about the objectives, the European Commission president said that firstly, it will strengthen the effect of our sanctions, secondly, it will diminish Russia’s revenues and thirdly, at the same time, it will stabilise global energy markets because it will allow some Russian seaborne oil to be traded, brokered, transported by EU operators to third countries, as long as it is solid below the cap. “So this price cap will benefit directly emerging and developing economies, and it will be adjustable over time so that we can react to market developments. Together with our partners, we stand united and firm in our opposition to Russia’s atrocious war,” she added.

 The West’s biggest economies agreed earlier this year to establish a price cap after lobbying by the United States and vowed to hash out the details by early December. But setting a number had proved difficult. Capping the price of Russian oil between USD 65 and USD 70 a barrel, a range previously under discussion, wouldn’t have caused much pain for the Kremlin.