Kremlin: G7's Oil Price Cap Does Not Exist in Practice

MOSCOW (Sputnik) - The G7 countries have set a price cap for Russian oil, which does not practically exist, if you look at the level of market prices, Kremlin spokesman Dmitry Peskov said on Tuesday.

"On the one hand, they [the G7 countries] have set a price cap, and on the other hand, there seems to be no price cap, based on the existing price level in the existing practice," Peskov said.

Russia does not recognize the oil price cap set by the G7 countries, the spokesman added.

"On the other hand, we have, of course, taken our own measures. And, of course, we do not recognize any price cap... We are working so that this system does not harm our own interests," Peskov stated.

Earlier in the day, US Special Presidential Coordinator for Global Infrastructure and Energy Security Amos Hochstein told Sputnik that it is too early to tell if the West's Russian oil price cap plan is working, but "so far so good."

After Russia began its special military operation in Ukraine, the West actively searched for ways to limit Moscow’s energy-related income, notably from oil and gas. The effort culminated with a $60 price-cap imposed by G7 member states and Australia on December 5.

In response to the price cap, Moscow banned the supply of Russian oil and petroleum products if contracts directly or indirectly support a price cap, in a decree signed by President Vladimir Putin in late December.

"Despite the decisions that were made regarding the embargo on supplies to Europe and the price cap that took effect last December, the situation with the production and export of Russian oil is stable. All necessary measures were taken, primarily by our companies, to find new logistics chains, markets," Russian Deputy Prime Minister Alexander Novak said following the meeting of the OPEC+ ministerial monitoring committee last month.