G7 price cap on Russian oil kicks in

A Group of Seven (G7) price cap on Russian seaborne oil came into force on Monday as the West tries to limit Moscow's ability to finance its war in Ukraine, though Russia has said it will not abide by the measure even if it has to cut production.

The logo of Russian oil pipeline company PJSC Transneft is seen on the company's main office building at the business center Moscow City in Moscow, Russia, 22 November 2022. Transneft transports 83 percent of oil and 30 percent of oil products produced in Russia.

EPA/MAXIM SHIPENKOV

Russia, the world's second largest oil exporter, will not sell oil that is subject to a Western price cap even if it has to cut production, President Vladimir Putin's point man on energy said on Sunday.

The Kremlin said the price cap would roil global energy markets but would not affect Russia's ability to fund its military operation in Ukraine.

The G7 nations and Australia on Friday agreed a $60 per barrel price cap on Russian seaborne crude oil after European Union members overcame resistance from Poland, which wanted it even lower.

The $60 price cap on seaborne Russian oil is not serious and will do little to deter Russia from waging its war, Ukrainian President Volodymyr Zelenskiy said.

Russia said it would continue to find buyers for its oil, despite what it said was a "dangerous" attempt by Western governments to introduce a price cap on its oil exports.

(Compiled by Himani Sarkar; Editing by Stephen Coates)

Source: Reuters