UPDATED: Kremlin ‘will not accept’ oil price cap – agencies

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Dec 3 (Reuters) – Russia “will not accept” a price cap imposed by the Group of Seven and its allies on Russian oil, state news agencies quoted the Kremlin as saying on Saturday.

TASS quoted Kremlin spokesman Dmitry Peskov as saying Moscow had prepared for the price cap and was analysing it.

“We will not accept this ceiling,” it quoted him as saying. He added that the analysis would be carried out quickly and Russia would then say how it would respond.

The price cap on Russian seaborne crude oil agreed to by the Group of Seven nations and Australia on Friday should be lowered to $30 per barrel to hit Russia’s economy harder, a senior Ukrainian presidential aide said on Saturday.

“This was everything that was proposed by the McFaul-Yermak group, but it would be necessary to lower it to $30 to destroy the enemy’s economy quicker,” Andriy Yermak, head of Ukraine’s presidential administration, wrote on Telegram referencing an international working group on sanctions.

Meanwhile, Russia said on Saturday 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.

A coalition of Western countries led by the G7 group of nations agreed on Friday to cap the price of Russian seaborne oil at $60 a barrel, as they aim to limit Moscow’s revenues and curb its ability to finance its invasion of Ukraine.

Russian President Vladimir Putin and high-ranking Kremlin officials have repeatedly said that they will not supply oil to countries that implement the price cap.

In comments published on Telegram, Russia’s embassy in the United States criticised what it said was the “reshaping” of free market principles and reiterated that its oil would continue to be in demand despite the measures.

“Steps like these will inevitably result in increasing uncertainty and imposing higher costs for raw materials’ consumers,” it said.

“Regardless of the current flirtations with the dangerous and illegitimate instrument, we are confident that Russian oil will continue to be in demand.”

The G7 price cap will allow non-EU countries to continue importing seaborne Russian crude oil, but it will prohibit shipping, insurance and re-insurance companies from handling cargoes of Russian crude around the globe, unless it is sold for less than the price cap.

Photo: A Romanian woman passes by in front a printed mesh depicting Russian President Vladimir Putin, part of a anti-war art exhibition in the King’s Square, located near the Russian Federation’s embassy compound, in Bucharest, Romania. EPA-EFE/ROBERT GHEMENT

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