Russia says it will not settle for oil value cap and is getting ready response By Reuters

© Reuters. FILE PHOTO: An aerial view exhibits the Vladimir Arsenyev tanker on the crude oil terminal Kozmino on the shore of Nakhodka Bay close to the port metropolis of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel

By Caleb Davis and Mark Trevelyan

(Reuters) -Russia “is not going to settle for” a value cap on its oil and is analysing tips on how to reply, the Kremlin mentioned in feedback reported on Saturday, in response to a deal by Western powers geared toward limiting a key supply of funding for its conflict in Ukraine.

Kremlin spokesman Dmitry Peskov mentioned Moscow had made preparations for Friday’s value cap announcement by the Group of Seven nations, the European Union and Australia, the Russian state information company TASS reported.

“We is not going to settle for this cover,” RIA information company quoted him as saying. He added that Russia would conduct a fast evaluation of the settlement and reply after that, RIA reported.

Russia has repeatedly mentioned it is not going to provide oil to nations that implement the cap – a stance reaffirmed by Mikhail Ulyanov, Moscow’s ambassador to worldwide organisations in Vienna, in posts on social media on Saturday.

“Ranging from this yr Europe will dwell with out Russian oil,” he mentioned.

The G7 value cap will enable non-EU nations to proceed importing seaborne Russian , however it is going to prohibit delivery, insurance coverage and re-insurance firms from dealing with cargoes of Russian crude across the globe, until it’s offered for lower than $60. That might complicate the cargo of Russian crude priced above the cap, even to nations which aren’t a part of the settlement.

Russian Urals crude traded at round $67 a barrel on Friday.

U.S. Treasury Secretary Janet Yellen mentioned the cap will notably profit low- and medium-income nations which have borne the brunt of excessive power and meals costs.

“With Russia’s financial system already contracting and its funds more and more stretched skinny, the worth cap will instantly reduce into (President Vladimir) Putin’s most necessary income,” Yellen mentioned in a press release.

In feedback printed on Telegram, Russia’s embassy in the USA criticised what it known as the “harmful” Western transfer and mentioned Moscow would proceed to seek out patrons for its oil.

“Steps like these will inevitably end in rising uncertainty and imposing greater prices for uncooked supplies’ customers,” it mentioned.

“Whatever the present flirtations with the damaging and illegitimate instrument, we’re assured that Russian oil will proceed to be in demand.”