Kremlin sets out response to West's oil price cap

Russia will react to the recently introduced oil price cap by the EU and G7 countries in a way that will best serve Moscow’s interests, Kremlin spokesman Dmitry Peskov said on Friday. He also warned that the move by Western countries will wreak havoc on global oil markets.

“We are talking about the potential destabilization of the global energy market, we are talking about the fact that this is effectively an artificial substitution of market relations and a market pricing process,” he said, commenting on the Western allies' punitive measure, which came into force last week.

Peskov once again highlighted that Russia will not trade with nations supporting the oil price cap.

“This, even in the medium term, may pose additional challenges for the stability of markets, but, of course, Russia will react in the way that best suits its interests,” he added.

The price cap on Russian seaborne oil exports of $60 per barrel was introduced by the EU, the G7 countries and Australia on December 5. It bans Western companies from providing  insurance, and other services to shipments of Russian oil unless the cargo is purchased at or below the set price.

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