Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Russia says oil price cap won't stop it from financing Ukraine war effort

Published 12/05/2022, 05:28 AM
Updated 12/05/2022, 06:00 AM
© Reuters. FILE PHOTO: Crude oil tankers, including Troitsky Bridge vessel, lie at anchor in Nakhodka Bay near the port city of Nakhodka, Russia, December 4, 2022. REUTERS/Tatiana Meel

LONDON (Reuters) -Russia said on Monday that a Western price cap on its oil would destabilise global energy markets but would not affect its ability to sustain what it calls its "special military operation" in Ukraine.

Kremlin spokesman Dmitry Peskov said Russia was preparing its response to Friday's move by the G7 and allies, which was aimed at squeezing Moscow's energy revenues and reducing its ability to wage war.

"Russia and the Russian economy have the required capacity to fully meet the needs and requirements of the special military operation," Peskov told reporters when asked if the move would undermine Moscow's military effort.

He said it was "obvious and indisputable that the adoption of these decisions is a step towards destabilising world energy markets".

The move by the G7, European Union and Australia will allow other countries to continue importing seaborne Russian oil but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude unless it is sold for less than $60 a barrel.

The EU itself is banning seaborne imports of Russian crude from Monday. Global benchmark Brent crude was up 1.95% at $87.24 a barrel by 1052 GMT.

Several Russian officials have previously said Moscow will not sell oil to countries that abide by the cap.

Former Russian president Dmitry Medvedev, now deputy chairman of Putin's Security Council, wrote on Telegram that the squeeze on Russian oil would lead to an "unimaginable" jump in world prices.

He suggested that the West would freeze this winter as a consequence of entering "an unequal battle with the Russian bear and General Frost."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"What is good for a Russian is death for a German," he added, referring to the winter cold. "One thing is clear - nothing good will come of it for consumers, that's for sure. So let them stock up on schnapps, quilts and water heaters."

Latest comments

he can't do anymore damage than he has done in ukraine! now the war will move deep into russia! let's see if the russians like it?
Russia all mighty Russia has prepared for more than 20 years !.. they mean business , wow propanda western media fights on the media whilst Russia is smoking NATO
Russia will isolate itself, deteriorating its vital trade specially in manufacturing and high technological products. That's the goal in the middle term. SoftPower that was useful against Russia since the 80's.
he prepared for 20 yrs and lost the war in less than a year, real competence!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.