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Russia rejects $60 cap on its oil; Ukraine welcomes EU, G7 move


KYIV: Russian authorities rejected a price cap on the country’s oil set by Ukraine’s Western supporters and threatened Saturday to stop supplying the nations that endorsed it. Australia, Britain, Canada, Japan, the United States and the 27-nation European Union agreed Friday to cap what they would pay for Russian oil at $60-per-barrel. The limit is set to take effect Monday, along with an EU embargo on Russian oil shipped by sea.
Kremlin spokesman Dmitry Peskov said Russia needed to analyze the situation before deciding on a specific response but that it would not accept the price ceiling. Russia’s permanent representative to international organizations in Vienna, Mikhail Ulyanov, warned that the cap’s European backers would come to rue their decision. “From this year, Europe will live without Russian oil,” Ulyanov tweeted.
Ukraine on Saturday welcomed a $60 price cap on Russian oil, saying it would “destroy” Russia’s economy. But the office of Ukrainian President Volodymyr Zelenskyy, meanwhile, called for a lower price cap, saying the one adopted by the EU and the Group of Seven leading economies didn’t go far enough. “It would be necessary to lower it to $30 in order to destroy the enemy’s economy faster,” Andriy Yermak, the head of Zelenskyy’s office, wrote on Telegram, staking out a position also favored by Poland – a leading critic of Russian President Vladimir Putin’s war in Ukraine.
Under Friday’s agreements, insurance companies and other firms needed to ship oil would only be able to deal with Russian crude if the oil is priced at or below the cap. Most insurers are located in the EU and the United Kingdom and could be required to observe the ceiling.
The market price of a barrel of Russian Urals crude is currently around $65 dollars, just slightly higher than the $60 cap, suggesting the measure may have only a limited impact in the short term.
Russia has earned 67 billion euros ($71 billion) from the sale of oil to the European Union since the start of the war in February. ap & afp





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