Russia warned on Monday of the negative impacts on global energy markets of the decision to apply Western countries’ price cap on Russian oil exports.
Russian spokesman Dmitry Peskov advised that Russia would not recognize any price ceilings, and an official response is being prepared to address the issue.
Speaking to the reporters in Moscow, Peskov said the EU measure to cap Russian will have no impact Russia’s operations but would 'undoubtedly have an impact on the stability of the global energy market, as far as its complete destabilization goes.'
'The economy of the Russian Federation has the necessary capacity to meet all the needs and requirements of the special military operation,' he said.
He conceded that the sanctions would have some effects in Russia, but not significantly, and would rather negatively impact European countries.
'Experts mention an adaptation process of the Russian economy to these new conditions. It would not be a professional approach to deny this. However, it would not also be a professional approach to remain silent about the damage of these sanctions on European countries,' he said.
Russian Deputy Prime Minister Alexander Novak said on Sunday that Russia is working on mechanisms to prohibit the use of a price cap instrument 'regardless of what level is set, because such interference could further destabilize the market.'
An EU embargo on imports of Russian crude oil by sea, which was adopted by the EU Commission on June 3 as part of a sixth package of restrictive measures against Moscow, came into effect on Monday.
Under the sanctions package, the bloc introduced a complete import ban on all Russian crude oil and petroleum products carried on maritime routes, which the EU says 'covers 90% of our current oil imports from Russia.'
In addition to these import bans, the EU and G7 countries have agreed to impose a $60 per barrel price cap on Russian seaborne oil, which will also enter into force on Dec. 5 and be reviewed every two months.
The parties involved will ensure that the Russian price cap is set at least 5% below the market price of crude oil.
Reporting by Emre Gurkan Abay
Writing by Sibel Morrow
Anadolu Agency
energy@aa.com.tr