Moscow has criticized the West’s cap on oil prices and declared that it “would not tolerate” it. Additionally, the Kremlin reportedly stated that it was deciding how to react.
According to a report by the Russian news agency TASS, Kremlin spokesman Dmitry Peskov stated that his nation has made preparations for the price ceiling that will take effect on Monday (December 5th).
According to AFP, the EU embargo on marine Russian crude oil exports will begin on Monday in conjunction with the price cap that the EU, G7, and Australia agreed on. Russia is only permitted to continue supplying oil sold for $60 per barrel or less under the cap.
“We will not accept this cap,” said Dmitry Peskov
We will not accept this cap, Peskov said, adding that Moscow will quickly analyze the deal and reply.
Russia has vowed to stop supplying oil to countries that took part in the price cap. This position was also supported by Mikhail Ulyanov, Moscow’s envoy to international organizations in Vienna, via posts on social media.
In one article, he asserted that “Europe will live without Russian oil starting this year.” In another, he claimed that Russia’s deputy prime minister, Alexander Novak, had concurred that Moscow would stop supplying nations that accept the price restriction.
According to US Treasury Secretary Janet Yellen, according to Reuters, the price cap will be especially helpful to low- and middle-income countries and would “cut into” the Russian President’s primary source of income.
“With Russia’s economy already contracting and its budget increasingly stretched thin, the price cap will immediately cut into (President Vladimir) Putin’s most important source of revenue.”
The Russian embassy in the US called it “dangerous”
Russian Urals crude traded at about $67 per barrel on Friday. The Russian embassy in the US criticized the cap and described the action as “dangerous,” but said that Moscow is “confident” it will still find customers for its oil.
“Steps like these will inevitably result in increasing uncertainty and imposing higher costs for raw materials’ consumers,” it said.
“Regardless of the current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand.”