Russia warns it won’t recognize price caps on its crude oil

On Monday, Russia warned that it would not recognize a price cap for its oil and was preparing a response to the decision of the European Union and the G7 to set the price at $60 per barrel.

“An answer is being prepared. Of course, one thing is clear: we do not recognize any borders, ”Kremlin spokesman Dmitry Peskov said at a daily telephone press conference.

Peskov added that the market would change both the price cap and the European embargo on Russian oil shipments by sea, which also came into effect on Monday.

“It is obvious and indisputable that the adoption of these decisions is a step towards destabilization of the global energy market,” the representative stressed.

The Russian official also mentioned that all countries should prepare for new price increases.

Peskov said that these restrictions would not affect the Russian military campaign in Ukraine, since Russia has enough reserves to counter them.

“The Russian economy has sufficient potential to cover all the needs of a military operation,” he said.

The press secretary of the Russian president stressed that the sanctions imposed against Russia “do not have a critical impact” on the country and that “the economy has adapted.”

“Certain problems naturally arise due to sanctions (…). Experts see perfectly well the process of adaptation of the Russian economy to these conditions, it would be unprofessional to deny it,” he added.

The G7 countries, together with Australia, agreed on Friday to cap the price of Russian oil at $60 (about 57 euros) per barrel, following an agreement reached by the 27 member states of the European Union.

The Russian government on Saturday accused the West of “dangerously and illegally” reformulating, at its own peril, free market principles by imposing a $60 cap on Russian oil.