Russia won’t accept oil price cap – Kremlin

The EU and allies had earlier agreed to a $60 per-barrel price ceiling for Russian crude

Moscow is not planning to recognize the price cap on Russian seaborne oil exports, Kremlin spokesman Dmitry Peskov said on Saturday, adding that the government is currently carrying out a review of the situation.

“Now we are analyzing,” Peskov told journalists. “Some preparation was carried out for such a ceiling. We will not accept this ceiling, and we will provide further information on how the work will be organized after the review.”

On Friday, the EU finally agreed to cap the price of Russian seaborne crude at $60 per barrel, which had been proposed by the US and backed by the Group of Seven in September. The step paves the way for official approval of the measure over the weekend.

The cap, which seeks to further sanction Moscow over the military operation in Ukraine, will prohibit Western companies from insuring or financing vessels transporting Russian oil, unless the cargo is purchased at or below the artificial price level. It is set to take effect on December 5 or “very soon thereafter.”

READ MORE: Shipping costs for Russian oil rising – Bloomberg

Similar restrictions, including a price cap for other petroleum products, are slated to be introduced in February.

Russia has repeatedly stated that it will not sell oil to nations that take part in the scheme, warning that the cap will wreak havoc in energy markets and push commodity prices even higher.

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