Russia Says It Will Stop Selling Oil To Countries That Set Price Caps

This content was created in Russia, where the law restricts coverage of Russian military operations in Ukraine.

MOSCOW, Sept 2 (Reuters) – The Kremlin said on Friday that Russia would stop selling oil to countries that impose price caps on Russia’s energy resources – caps that Moscow said would lead to major destabilization of the global oil market . “Companies imposing a price ceiling will not be among the recipients of Russian oil,” Kremlin spokesman Dmitry Peskov told reporters on a conference call, backing comments made by Deputy Prime Minister Alexander Novak on Thursday. read more “We just won’t work with them on non-market principles,” Peskov said. Sign up now for FREE unlimited access to Reuters.comSign up Group of Seven (G7) finance ministers were due to meet effectively on Friday and were expected to confirm plans to impose a price cap on Russian oil markets aimed at reducing revenue flowing to Moscow. read more The European Union earlier this year imposed a partial ban on oil purchases from Russia, which Brussels says will halt 90% of Russia’s exports to the 27-member bloc when fully in force. European Commission chief Ursula von der Leyen said on Friday it was time for the EU to consider a similar price cap on Russian gas markets. Peskov said European citizens were paying the price for such moves, imposed in response to Moscow’s military campaign in Ukraine. “Energy markets are at a fever pitch. This is mainly in Europe, where anti-Russian measures have led to a situation where Europe is buying liquefied natural gas (LNG) from the United States for a lot of money – unreasonable money. American companies are becoming richer and European taxpayers are getting poorer,” Peskov said. Russia was studying how a price cap on its oil exports might affect its economy, Peskov said. “One thing can be said with certainty: such a move will lead to significant destabilization of oil markets.” Before Russia sent tens of thousands of troops to Ukraine in February, Europe was the destination for nearly half of Russia’s crude and oil product exports, according to the International Energy Agency. The bloc imported 2.2 million barrels per day (bpd) of crude, 1.2 million bpd of refined products and 0.5 million bpd of diesel in 2021, with Germany, Poland and the Netherlands the biggest customers. read more Sign up now for FREE unlimited access to Reuters.comSign up Report from Reuters. Editor: Kevin Liffey Our Standards: The Thomson Reuters Trust Principles.