While saying that it was analysing how to respond, Russia denounced the West’s price cap on its oil and said it “will not accept” it.
Kremlin spokesperson Dmitry Peskov as per a report by the Russian news agency TASS said that his country has made preparations for the price cap that goes into effect on Monday (December 5th).
AFP reports that this price cap agreed by the EU, G7 and Australia will go into effect on Monday alongside an EU embargo on maritime deliveries of Russian crude oil. Under the cap, Russia can only continue delivery of oil sold at $60 per barrel or less.
Peskov said “We will not accept this cap,” adding that Moscow will conduct a rapid analysis of the agreement and respond.
Russia has insisted that it will stop oil supplies to nations that have participated in the price cap. Mikhail Ulyanov, Moscow’s ambassador to international organisations in Vienna, also confirmed this stance in social media posts.
“Starting from this year Europe will live without Russian oil,” he said in one post, in another he claimed that Deputy Prime Minister of Russia Alexander Novak too has confirmed that Moscow will cut supplies to countries supporting the price cap.
Starting from this year #Europe will live w/o Russian oil. #Moscow has already made it clear that it will NOT supply #oil to those countries who support anti-market price cap. Very soon the #EU will blame #Russia for using oil as a weapon.
Deputy Prime Minister of Russia A.Novak confirmed today that Moscow would not supply oil to countries supporting price cap.They can make politically motivated anti-market decisions putting at risk stability of the oil market, Russia has the right to react accordingly.
Reuters reports that as per US Treasury Secretary Janet Yellen the price cap will be particularly beneficial to low and medium-income countries and would “cut into” the Russian President’s most important source of revenue.
“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.”