'Will not accept this': Russia rejects 'dangerous' oil price cap imposed by EU, G7 and Australia

Moscow on Saturday (December 3) responded to the "dangerous" price cap on Russian crude oil which has been imposed by the Group of Seven (G7) countries, the European Union and Australia. The West has come up with a $60 oil price cap, which will come into effect on Monday or soon after. This cap is in addition to an EU embargo on maritime deliveries of Russian crude oil.

The latest move by the West is aimed at restricting Moscow's revenues so that its capability to finance the ongoing war in Ukraine is reduced.

Kremlin spokesman Dmitry Peskov told domestic news agencies: "We will not accept this price cap." Peskov also said that Russia was "analysing" the move.

EU embargo on maritime deliveries is meant to prevent the seaborne shipments of Russian crude to the European Union, which is apparently responsible for two-thirds of the bloc's oil imports and such restrictions will cost Russia billions of euros.

The G7 said it was acting on its promise "to prevent Russia from profiting from its war of aggression against Ukraine, to support stability in global energy markets and to minimise negative economic spillovers of Russia's war of aggression".

The decision was welcomed by nations, including the US and Ukraine. The White House called it "welcome news" that would help limit Putin's ability to fund the Kremlin's "war machine".

Kyiv also welcomed the move. Ukraine's presidential chief of staff Andriy Yermak said on Saturday: "We always achieve our goal and the economy of Russia will be destroyed, and Russia itself will pay and be responsible for all crimes."

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Meanwhile, Russia has reaffirmed its stance of not supplying oil to nations that implement the cap. Mikhail Ulyanov, who is Russia's ambassador to international organisations in Vienna, said in a social media post: "Starting from this year Europe will live without Russian oil."

Russia's embassy in the US criticised the move, stating that it was "reshaping" free market principles. In a post on Telegram, it also said that its oil would continue to be in demand despite the measures.

It said: "Steps like these will inevitably result in increasing uncertainty and imposing higher costs for raw materials' consumers. Regardless of the current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand."

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