Russia “will not accept” a price cap on its oil and is considering how to respond, the Kremlin said in comments released on Saturday (3), in response to a deal by Western powers aimed at limiting a key source of funding for its war. in Ukraine.
Kremlin spokesman Dmitry Peskov said Moscow had made preparations for last Friday’s price cap announcement by the Group of Seven (G7) nations, the European Union and Australia, the news agency reported. Russian state-owned TASS.
“We will not accept this limit,” he said, according to the RIA news agency. He added that Russia would conduct a swift review of the deal and respond thereafter, RIA reported.
Russia has repeatedly said it will not supply oil to countries that implement the limit – a position reaffirmed by Mikhail Ulyanov, Moscow’s ambassador to international organizations in Vienna, in social media posts on Saturday.
“From this year Europe will live without Russian oil,” he said.
The G7 price cap will allow non-EU countries to continue importing Russian crude oil by sea, but will prohibit transport, insurance and reinsurance companies from handling Russian oil cargoes worldwide unless it sells for less than US$ 60. This can complicate the shipment of Russian oil with a price above the ceiling, even for countries that are not part of the agreement.
Russian Urals crude was trading at around $67 a barrel on Friday.
US Treasury Secretary Janet Yellen said the cap would particularly benefit low- and middle-income countries that have suffered the brunt of high energy and food prices.
“With Russia’s economy already contracting and its budget tightening, the price cap will immediately reduce (President Vladimir) Putin’s most important source of revenue,” Yellen said in a statement.
In comments published on Telegram, Russia’s embassy in the United States criticized what it called a “dangerous” Western move and said Moscow would continue to find buyers for its oil.
“Measures like these will inevitably result in increased uncertainty and imposing higher costs on raw material consumers,” he said.
“Regardless of current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand.”
Source: CNN Brasil
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