Russian Oil Prices to Change After Introduction of Cap by West, Kremlin Says
10:15 GMT 05.12.2022 (Updated: 13:53 GMT 19.12.2022)
© Sputnik / Alexey MaishevMoscow Kremlin and Bolshoi Moskvoretsky Bridge. In the background: the building of the Ministry of Foreign Affairs of the Russian Federation.
© Sputnik / Alexey Maishev
MOSCOW (Sputnik) - The cost of Russian oil after the introduction of a price cap by the West will change, this was a step towards destabilizing global energy markets, Kremlin spokesman Dmitry Peskov said on Monday.
"[The price] will change. One thing is clear and undeniable: the adoption of these decisions is a step towards destabilizing global energy markets," Peskov told reporters when asked if Europeans and the world should prepare for higher prices, as the US convinces allies that nothing will change.
5 December 2022, 07:53 GMT
On Sunday, Russian Deputy Prime Minister Alexander Novak said that Russia was devising mechanisms to render Western price cap on its oil inapplicable, regardless of the cap's level.
Last week, the European Union reached an agreement on setting a price cap on Russian oil at $60 per barrel, which went into effect on Monday.
The cap will be reviewed every two months to remain at 5% below International Energy Agency benchmark. The G7 nations and Australia also agreed that same day to set a $60 price ceiling on oil from Russia.
Western countries have been seeking ways to limit Russia's income from oil and gas exports since the country launched a military operation in Ukraine on February 24. In September, the G7 finance ministers confirmed their intention to impose a price cap on Russian oil and urged all nations to support the initiative. In October, the EU introduced its eighth package of sanctions against Moscow, which included a legislative basis for setting a price cap for maritime shipments of Russian oil to third countries.