Russia vows to continue offensive in Ukraine despite Western oil price cap

The cap on the price of Russian oil decided by the Western powers will not have an impact on Moscow’s offensive in UkraineThe Kremlin assured this Monday.

“The economy of the Russian Federation has all the necessary capabilities to fully respond to the needs and requirements of the special military operation. These measures will have no impact.” The Kremlin spokesman told the press, Dmitry Peskov.

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The spokesman was referring to the ceiling that the European Unionthe G7 countries and Australia adopted against Russian oil to hurt Moscow economically.

The adopted mechanism provides that only Russian oil sold at or below $60 a barrel can be delivered.

The price of a barrel of Ural crude oil is currently trading around 65 dollarsslightly above the cap adopted, which should enter into force as of this Monday.

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The purpose of this new sanction is deprive Moscow of a part of the voluminous income it obtains from the sale of its hydrocarbons, and diminish its ability to finance the war effort in Ukraine.

Peskov added that these measures will have “perhaps an impact on the stability of the world energy market”, and considered thate are “a step towards its destabilization”.

As he also said, Moscow is already “preparing” reprisals for this cap on the price of its oil.

The activation of the cap coincides with the entry into force this Monday of the EU embargo on the importation of Russian oil by sea.

The Kremlin warned that it will not deliver more oil to countries that adopt the price cap mechanism, a position reiterated on Sunday by the Deputy Prime Minister for Energy, Alexander Novak.

Novak, quoted by the Russian agencies, stated that his country is working on “mechanisms” to “prohibit the use” of the price limitation tool.

“Similar interference can only cause further destabilization of the market, and a shortage of energy resources,” argued the leader.

Source: Elcomercio

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