Kremlin assures EU’s push to attack Russian oil ship-outs will have consequences

(MENAFN) The Kremlin has cautioned that the European Commission’s efforts to reduce the price cap on Russian oil exports may trigger instability in global energy markets. Kremlin spokesperson Dmitry Peskov made the remarks on Wednesday in response to reports that Brussels is considering lowering the current price cap set by EU sanctions.

Peskov stated that such measures “undoubtedly do not contribute” to stabilizing international oil and energy markets. The European Commission recently proposed its 18th sanctions package against Russia, targeting energy exports, infrastructure, and financial sectors. Among the proposals are cutting the oil price cap from $60 to $45 per barrel, banning future use of the Nord Stream gas pipelines, restricting imports of refined fuels derived from Russian crude, and blacklisting 77 vessels accused of evading sanctions.

The package requires approval from all 27 EU member states to be implemented. Peskov noted that Russia is carefully watching the EU’s moves and will respond to protect its interests if the price cap is lowered. He also emphasized that Russia has already adapted to the “illegal” sanctions and gained valuable experience mitigating their impacts.

The $60 price cap on Russian seaborne crude oil was introduced by the EU, G7, and Australia in December 2022, aiming to reduce Moscow’s export revenues amid the conflict in Ukraine by barring Western companies from insuring or shipping oil sold above that price. Russia has consistently rejected this cap, calling it market-distorting and threatening to cut off supplies to countries that uphold it.

Market experts say enforcing the cap has been challenging, as shipping and insurance companies have resisted compliance, and nearly all seaborne Russian crude has traded above the $60 threshold since the measure’s inception.

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