Russia said on Saturday that it “will not accept” the price cap on its oil after the European Union, the G7 and Australia agreed on a day before such a mechanism that could limit Moscow’s means to finance its offensive in Ukraine.
“We will not accept this ceiling,” Russian presidential spokesman Dmitry Peskov told reporters. However, he said that Moscow had “prepared” upstream “for such a ceiling”, without elaborating.
$60 a barrel
On Friday, the 27-nation European Union, the G7 and Australia agreed to “a maximum price of US$60 for crude oil of Russian origin transported by sea,” according to the terms of a joint statement. The price of a barrel of Russian oil (crude from the Urals) currently fluctuates around 65 dollars, just above the European ceiling, which implies a limited impact in the short term.
The agreement was possible thanks to the consensus reached on Friday by the Twenty-seven of the European Union. The finance ministers of the G7 countries agreed in early September on this tool, designed to deprive Russia of financial means. The mechanism will take effect on Monday “or very soon thereafter,” the G7 and Australia said. It is also on this day that the EU embargo on Russian seaborne oil begins.
Thus, it will only be possible to continue delivering oil sold by Russia at a price equal to or less than $60. Beyond this limit, it will be prohibited for companies to provide services that allow maritime transport (freight, insurance, etc.).
Source: BFM TV
