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Russia says it won't accept oil price cap and is preparing response

World Dec 05, 2022 05:22AM ET
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© Reuters. FILE PHOTO: An aerial view shows the Vladimir Arsenyev tanker at the crude oil terminal Kozmino on the shore of Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel
 
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By Caleb Davis and Mark Trevelyan

(Reuters) -Russia "will not accept" a price cap on its oil and is analysing how to respond, the Kremlin said in comments reported on Saturday, 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 Friday's price cap announcement by the Group of Seven nations, the European Union and Australia, the Russian state news agency TASS reported.

"We will not accept this cap," RIA news agency quoted him as saying. He added that Russia would conduct a rapid analysis of the agreement and respond after that, RIA reported.

Russia has repeatedly said it will not supply oil to countries that implement the cap - a stance reaffirmed by Mikhail Ulyanov, Moscow's ambassador to international organisations in Vienna, in posts on social media on Saturday.

"Starting from this year Europe will live without Russian oil," he said.

The G7 price cap will allow non-EU countries to continue importing seaborne Russian crude oil, but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than $60. That could complicate the shipment of Russian crude priced above the cap, even to countries which are not part of the agreement.

Russian Urals crude traded at around $67 a barrel on Friday.

U.S. Treasury Secretary Janet Yellen said the cap will particularly benefit low- and medium-income countries that have borne the brunt of high energy and food prices.

"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," Yellen said in a statement.

In comments published on Telegram, Russia's embassy in the United States criticised what it called the "dangerous" Western move and said Moscow would continue to find buyers 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."

Russia says it won't accept oil price cap and is preparing response
 

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Comments (18)
pierre Demauge
pierre Demauge Dec 05, 2022 8:37PM ET
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Who cares as oil will be in the 50’s in 2 weeks ?
Jim Morrison
Jim Morrison Dec 05, 2022 6:36AM ET
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Yellen thinks oil is transitory.
Ken Roth
Ken Roth Dec 05, 2022 4:27AM ET
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what response....??? sell their oil to the chinese or the indians which they already do? attack NATO? Fire more missiles into the civilians in Ukraine which they already do? *******up some pipelines which they also have already done? Threaten with nuclear war, which they also have already done? *******up the dam at dnipro which we already know they would be prepared to do? Escalate the war against ukranie with new conscripts equipped with WW1 weapons (sabels) because they are running out of WW2 ammunition? Maybe it is time to call it a day and leave ukraine alone and make a peace agreement....
Robert La Fontaine
Robert La Fontaine Dec 05, 2022 4:27AM ET
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You still living under a rock🤦🏼‍♂️
Brad Albright
Brad Albright Dec 05, 2022 4:27AM ET
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No, that's a clear eyed assessment.
Benjamin USA
Benjamin USA Dec 04, 2022 11:58PM ET
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Russia is weak. This much is clear.
Jana Pandiya Raj A S
Jana Pandiya Raj A S Dec 04, 2022 11:58PM ET
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Just wait and see brother….
Jason Moreira
Rolln Dec 04, 2022 10:27PM ET
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Just seal Russia off. Nothing and no one in or out.
Maximus Maximus
Maximus Maximus Dec 04, 2022 9:24PM ET
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russia is powerless to do anything about this. either they sell under the cap or they'll have to send their oil on uninsured rusty old vessels. can't see many countries wanting those anywhere near their waters..
Lucas Sciacchitano
Lucas Sciacchitano Dec 04, 2022 8:59PM ET
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Another reason to buy USD, It continues to rein supreme
Jimmy Richardson
Jimmy Richardson Dec 04, 2022 5:03PM ET
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For Zelensky to still be alive and still be in this fight this long, bro your my hero!
Lake Lot
Lake Lot Dec 04, 2022 5:03PM ET
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Impressive ,
Jimmy Richardson
Jimmy Richardson Dec 04, 2022 5:02PM ET
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Russia is going to sale their oil to any country that wants to buy it so this cap non sense is stupid.
Brad Albright
Brad Albright Dec 04, 2022 5:02PM ET
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You apparently misunderstand what the cap is and his it will be implemented.
JIM VETTER
JIM VETTER Dec 04, 2022 5:02PM ET
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Brad Albright India and China don't care
William Smith
William Smith Dec 04, 2022 5:02PM ET
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Brad Albright Gee Brad, crawl out from under that rock, Russia will easily circumvent this.
gab nea
gab nea Dec 04, 2022 11:00AM ET
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who cares what evilputin wants anymore!
Brad Albright
Brad Albright Dec 04, 2022 11:00AM ET
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lakes Tenn No, it's not ignor amous.
 
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