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Ukraine War: Russia says it won’t accept oil price cap

Russia claims it will not consent to a price restriction on oil exports approved by friends of the West.

The ban, which was approved on Friday, aims to prevent nations from paying more than $60 (£48) for a barrel of Russian crude oil that is transported by sea.

The law, which is set to take effect on Monday, will increase Western pressure on Russia over the invasion.

Dmitry Peskov, a spokesman for the Kremlin, asserted that Moscow had planned for the action and was considering its options.

He declared, “We won’t tolerate this ceiling.”

The G7 industrialized nations—the US, Canada, the UK, France, Germany, Italy, Japan, and the EU—proposed the price ceiling in September in an effort to limit Moscow’s ability to fund the conflict in Ukraine.

The G7, the EU, and Australia said in a joint statement that the choice was made to “prevent Russia from benefitting from its campaign of aggression against Ukraine.”

The price ceiling will help limit Putin’s ability to support the Kremlin’s “war machine,” according to the White House, which called the agreement “good news.”

Jeremy Hunt, the chancellor of the United Kingdom, declared that his country would continue to support Ukraine and seek out new approaches to “tight down on Putin’s financing streams.”

Russia will undoubtedly feel the effects of the sanctions, but the impact will be somewhat lessened by its decision to sell its oil to other markets, such as India and China, who are currently the two biggest consumers of Russian crude oil.

Ukraine claims that the Western cap should be cut in half.

Andriy Yermak, the presidential chief of staff of Ukraine, declared on Telegram on Saturday that “Russia’s economy will be decimated” and that “it will pay and be responsible for all its crimes.”

However, he continued, “a cap of $30 would have killed it more swiftly.”

The price cap deal was reached just a few days before the EU-wide embargo on the import of Russian crude oil by sea, which takes effect on December 5th.

The price cap is designed to work in conjunction with that and influence oil exports globally.

Only oil and petroleum products that are sold at prices equal to or lower than the price cap may be purchased by nations that agree to the G7-led policy.

The Western friends of Ukraine also want to refuse insurance to ships carrying Russian oil to nations that disregard the price ceiling. Russia will find it challenging to sell oil over that price as a result.

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