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Russia looking out for number one, won’t recognize any oil price cap — Kremlin

Dmitry Peskov also drew attention to the duality of the situation with the imposed restrictions

© REUTERS/Sergei Karpukhin

MOSCOW, March 7. /TASS/. Russia will not recognize any "price cap" on its oil and has taken steps to ensure that its interests are not harmed, Kremlin spokesman Dmitry Peskov told reporters on Tuesday.

The Kremlin spokesman was asked to comment on Amos Hochstein, Senior Energy Security Adviser at the US State Department, who said the cap on Russian oil prices imposed by the G7 and a number of its allies is "working."

"Of course, we have taken our own measures. And, of course, we do not recognize and will not recognize any [price] cap. We work in such a way so that this system does not harm our own interests," Peskov responded.

The Kremlin official also drew attention to the duality of the situation with the imposed restrictions.

"After all, the [price] cap was already quite "loosely set." That's the first thing, this is from their point of view. Therefore, on the one hand, they installed a cap, and on the other hand, it seems like there is no cap, if we proceed from the existing price level, the existing practices," Peskov explained.

On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force. G7 nations, the EU and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. Moreover, starting February 5, 2023, similar restrictions on deliveries of petroleum products from Russia were enforced as the EU Council officially greenlighted the decision, in conjunction with the G7, to introduce a price ceiling on Russian petroleum products supplied by sea at $100 for premium oil and at $45 for discount.

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