Wed | Feb 8, 2023

Russia rejects $60-a-barrel cap on its oil, warns of cutoffs

Published:Saturday | December 3, 2022 | 7:06 PM
Soldiers who were recently mobilised by Russia for the military operation in Ukraine stand at a ceremony before boarding a train at a railway station in Tyumen, Russia, Friday, December 2, 2022. Russian President Vladimir Putin's order to mobilise reservists for the conflict prompted large numbers of Russians to leave the country. (AP Photo)

KYIV, Ukraine (AP) — Russian authorities rejected a price cap on the country's oil set by Ukraine's Western supporters and threatened Saturday to stop supplying the nations that endorsed it.

Australia, Britain, Canada, Japan, the United States and the 27-nation European Union agreed Friday to cap what they would pay for Russian oil at $60-per-barrel.

The limit is set to take effect Monday, along with an EU embargo on Russian oil shipped by sea.

Kremlin spokesman Dmitry Peskov said Russia needed to analyse the situation before deciding on a specific response but that it would not accept the price ceiling.

Russia's permanent representative to international organisations in Vienna, Mikhail Ulyanov, warned that the cap's European backers would come to rue their decision.

“From this year, Europe will live without Russian oil,” Ulyanov tweeted.

“Moscow has already made it clear that it will not supply oil to those countries that support anti-market price caps. Wait, very soon the EU will accuse Russia of using oil as a weapon.”

The office of Ukrainian President Volodymyr Zelenskyy, meanwhile, called Saturday for a lower price cap, saying the one adopted by the EU and the Group of Seven leading economies didn't go far enough.

Follow The Gleaner on Twitter and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com.