Russia refuses to impose a ceiling on the price of oil

Russia intends to reject the Western decision to impose a ceiling on the price of Russian oil.

According to Arabiya.net, Kremlin spokesman Dmitry Peskov said that Moscow will not recognize the decision to impose a ceiling on the price of Russian oil. He stressed that the sanctions against Moscow harm the Europeans.

Today, Monday, the ceiling imposed by the Group of Seven on the price of Russian seaborne oil came into force, as the West tried to limit Moscow's ability to finance its war in Ukraine, but Russia said it would not abide by this measure even if it was forced to cut production.

The G7 countries, the European Union and Australia will impose the price ceiling, which comes in addition to the European Union's ban on Russian crude oil imports by sea and similar pledges by the United States, Canada, Japan and Britain.

This procedure allows the shipment of Russian oil to other countries using tankers of the Group of Seven and the European Union, insurance companies and credit institutions, and that only if the shipment is purchased at the specified price ceiling or less.

Given the presence of the world's major shipping and insurance companies in the G7 countries, it may be difficult for Moscow to sell its oil at a higher price.

Russia, the world's second largest oil exporter, said on Sunday that it would not accept this price ceiling and would not sell oil priced at it even if it was forced to cut production.

The sale of oil and gas to Europe has been one of the main sources of foreign currency earnings for Russia since Soviet geologists discovered oil and gas in the swamps of Siberia in the decades after World War II.

The EU and G7 will review the level of the Russian oil price cap every two months, with the first such review in mid-January.

With the price cap set at $60 a barrel, the EU and G7 countries expect Russia to continue selling oil at that price and accept lower profit margins.

China's foreign ministry said on Monday that Beijing will continue its energy cooperation with Russia on the basis of respect and mutual benefit.