"Yu Gas Price Cap Has No Impact on Ukraine War...Causes Energy Market Instability"

[Image source=Yonhap News]

[Asia Economy Reporter Yuri Choi] On the 5th (local time), Russia claimed that the price cap on Russian crude oil introduced by the European Union (EU), the Group of Seven (G7), and Australia would not affect the war in Ukraine.

According to TASS News Agency and others, Dmitry Peskov, the Kremlin spokesperson, said in a phone briefing with reporters on the same day in response to questions about the price cap, "The Russian economy has the potential to meet the operational demands in Ukraine," and "This measure will not affect Russia's 'special military operation.'"

He pointed out, "So far, Western sanctions have caused problems for Russia but nothing serious," and rather, "The price cap will cause instability in the global energy market."

Regarding recent repeated calls by German Chancellor Olaf Scholz for strong sanctions against Russia, he countered, "It is clear that the price cap will harm Europeans, including the German economy."

Furthermore, Peskov reaffirmed Russia's stance that it will not accept this measure and will soon present countermeasures.

The EU, G7, and Australia implemented the Russian crude oil price cap on the same day to make it difficult for Russia to finance its war by setting the price cap at $60 per barrel. The $60 per barrel cap is about $10 lower than the current price of Russian Urals crude oil, which is around $70 per barrel. Participating countries prohibit maritime services such as insurance and transportation for Russian crude oil exported at prices exceeding the cap.