Sunday, 29 January, 2023
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Russia rejects oil price cap

Russia rejects oil price cap

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KYIV: Russia on Saturday rejected a $60 price cap on its oil agreed by the EU, G7 and Australia, which Ukraine said would contribute to destruction of Russia's economy, reports AFP.

We will not accept this price cap, Kremlin spokesman Dmitry Peskov told domestic news agencies, adding that Russia, the world's second largest crude exporter, was analysing the move.

The $60 oil price cap will come into effect on Monday or soon after, alongside an EU embargo on maritime deliveries of Russian crude oil.

The embargo will prevent seaborne shipments of Russian crude to the European Union, which account for two thirds of the bloc's oil imports, potentially depriving Russia's war chest of billions of euros.

Kyiv welcomes the price cap, which stops countries paying more than $60 a barrel for Russian oil deliveries by tanker vessel and is designed to make it harder for Russia to bypass EU sanctions by selling beyond the European Union at market prices.