Russia vows to set up a mechanism by the year's end to prevent Russian companies from selling oil to countries imposing price caps, according to the country's Deputy Prime Minister Alexander Novak.
'We are currently discussing, fine-tuning the decision, and discussing it with companies,' Novak told reporters in Moscow.
Russian spokesman Dmitry Peskov confirmed on Monday that Russia would not recognize any price ceilings in reference to the EU and G7 price cap imposed on Russian oil exports, adding that an official response to the issue is being prepared.
The EU and the G7 agreed to impose a $60 per barrel price cap on Russian seaborne oil, which will go into effect 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.
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, also 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.'
Reporting by Emre Gurkan Abay
Writing by Sibel Morrow
Anadolu Agency
energy@aa.com.tr