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The Kremlin has responded to the G7’s announcement of a price cap on Russian oil

Story Highlights
  • Kremlin spokesman Dmitry Peskov said Moscow had made preparations for the price cap announcement coming from the Group of Seven nations, the European Union and Australia, according to TASS.
  • Russian embassy to the United States published a comment on Telegram critical of Western move described as "dangerous." It said that Moscow would continue to find buyers for its oil.

The Kremlin spokesman said that Moscow was prepared for Friday’s price cap announcement by the Group of Seven Nations, the European Union and Australia. The Russian news agency TASS reported this.

Russia will not accept a price cap on its oil and is analyzing how to respond to these demands. The Kremlin commented on this issue in response to the deal Western powers have made demanding that Russia limit one of their primary sources of funding for the ongoing war in Ukraine.

Kremlin spokesman Dmitry Peskov said Moscow had made preparations for the price cap announcement coming from the Group of Seven nations, the European Union and Australia, according to TASS.

The Russian Ambassador to the United Arab Emirates has stated that Russia will not accept the new oil production caps. He said that Russia would conduct a rapid analysis of the agreement and respond after that, according to reports.

Russia has repeatedly said that it will not supply oil to countries that implement the cap, as Russia reaffirms on social media on Saturday.

He said that Europe would be living without Russian oil from this year.

If the G7 exceeds Russia’s oil price limits, it will be allowed to export unwanted or discounted crude to non-EU nations, but insurers and shippers won’t be able to transport the product outside of ports in the EU. This could affect supply chains that have been established to earn more revenue, even if they’re not bound by the agreement.

Urals crude oil, a Russian export, traded at about $67 a barrel on Friday.

The cap will especially help countries that have been hurt the most from high food and energy costs.

When a country like Russia sees its economy shrinking while their budget is stretched thin, they sometimes resort to cutting prices strategically. Yellen says that this decision will not only hurt the Russian economy with immediate effects, but also creates concerns for other countries in the region and beyond.

Russian embassy to the United States published a comment on Telegram critical of Western move described as “dangerous.” It said that Moscow would continue to find buyers for its oil.

This will inevitably lead to higher costs because companies will be forced to pay more for raw materials, the IEA said.

“The current fascination with danger will not be enough to slow down the demand for Russian oil.”

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