Russia Has Rejected The West’s Oil Price Cap Of $60 Per Barrel

Russia has reportedly rejected a $60 per barrel price cap on seaborne crude oil decided by Australia, the EU, and the Group of Seven (G7) nations some days back.

Per TASS Russian News Agency, Dmitry Peskov, Kremlin Spokesman mentioned that they were assessing the scenario. Preparations for such a cap were made. We won’t accept the price cap and we’ll inform you how the work will be organized once the assessment is done.

On Friday, the EU struck a deal on Friday for a $60/barrel price cap on Russia’s oil, a major step as the Western sanctions aim at reordering the global oil market to prevent rate hikes and starve Vladimir Putin of funding related to the war in Ukraine.

Russia Has Rejected The West’s Price Cap Of $60 Per Barrel
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Europe had to set the discounted rate that other countries will pay by Monday when an EU embargo on Russia’s oil shipped via sea and a ban placed on insurance for the supplies take effect.

Thereafter, G7 nations and Australia also agreed to adopt a $60 per barrel price cap on Russia’s oil.

Western governments have agreed to cap the price of Russia’s oil exports to restrict the fossil fuel earnings for supporting Moscow’s budget, its military, and the invasion of Ukraine.

The cap is set to be effective from Monday onward, the day the EU will boycott most of Russia’s oil — it’s crude that is being shipped by sea.

Ukraine’s President Volodymyr Zelensky has, however, mentioned that the cap on the price of Russia’s oil is not “serious” as it’s seemingly comfortable for Moscow.

Russia has already caused severe losses to countries spread across the world by destabilizing the energy market deliberately, he argued, describing the decision on the price cap as “a weak position”.

It is a matter of time before more advanced tools will need to be used, Zelensky added. It is a pity that the time will be lost.

Zelensky complained that the world had reflected weakness by setting the price cap at $60, which he mentioned is going to swell Russia’s budget by $100 billion each year.

The money will be spent toward further destabilization of those nations that have been trying to avoid taking serious decisions, he said.

References: Financial Post, Live Mint

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