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A price cap on Russian seaborne oil set by the Group of Seven came into effect on Monday as the West seeks to limit Moscow's ability to finance its war in Ukraine, although Russia has said it will not comply even if it has to cut output.
Russian Deputy Prime Minister Alexander Novak called it gross interference that contradicts free trade rules and will further destabilize the market.
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“We will sell petroleum products only to those countries that will work with us on market terms, even if we have to reduce production a little,” Novak, the Russian government official in charge of oil, gas, atomic energy and coal, said on Sunday.
The G7 agreement allows Russian oil to be shipped to third countries using G7 and EU tankers, insurance companies and credit institutions, only if the cargo is purchased below the $60 per barrel threshold.
Industry participants and a U.S. official said in October that Russia may have access to enough tankers to ship most of its oil beyond the cap, underscoring the limits of the most ambitious plan yet to reduce Russia’s wartime revenue.
Ukrainian President Volodymyr Zelenskiy said $60 was too high to stop Russia from waging war in Ukraine. “You don’t call it a serious decision to set such a limit on Russian prices, which is quite comfortable for the budget of a terrorist state.”
The United States and its allies have imposed sweeping sanctions on Russia and sent billions of dollars in military aid to Ukraine since Russia invaded on Feb. 24.
Source: Nick Starkov and Pavel Polityuk | Notícias Agrícolas
