Russia says 'will not accept' price cap on oil exports

Russia “will not accept” the price cap imposed by EU and G7 countries on its oil exports, the Kremlin said on Saturday.

“We are analyzing it now. Some preparation has been made,” Kremlin spokesman Dmitry Peskov told reporters in Moscow.

“We will not accept this cap, and we will inform you … after the analysis, which will be carried out quickly,” he added.

EU countries on Friday agreed on a $60 per barrel price cap for Russian crude oil exports transported by sea, and have been joined by the G7 states and Australia.

The move aims to hit Moscow’s revenues from crude oil exports and sales as the Ukraine war approaches 2023, its second calendar year.

The agreement goes into effect on Monday, when the EU will begin cutting off crude supplies from Russia by sea.

The parties will ensure that the Russian price cap is set at least 5% below the market price of crude oil, and G7 countries will ban their shipping companies from facilitating Russian oil shipments if they are sold for more than $60 a barrel.

On a possible extension in military mobilization in Russia, Peskov said there was “no information” on the matter, emphasizing that President Vladimir Putin has said the process had been “completed.”