The upper limit is still too high: Kyiv: Oil price cap will destroy Russia's economy

Moscow will soon be allowed to sell its oil for a maximum of $60 a barrel.

The upper limit is still too high: Kyiv: Oil price cap will destroy Russia's economy

Moscow will soon be allowed to sell its oil for a maximum of $60 a barrel. The EU agrees on this. However, this does not go far enough for Ukraine. She calls for a significantly lower upper price limit. Meanwhile, Putin warns of "serious consequences".

Ukraine has described the price cap for Russian oil of $60 a barrel decided by the West as too high. In order to "destroy" the Russian enemy's economy faster, it is necessary to reduce the price to $30, the head of the Ukrainian Presidential Office Andriy Yermak said in his Telegram channel. At the same time, he welcomed the fact that the group of seven leading industrial nations (G7) and Australia had decided on this price cap for oil transport by sea.

Russia sees this as a violation of the laws of the free market. The Kremlin also described the planned oil price cap as dangerous. This would only fuel uncertainties and drive up the cost of raw materials, according to a message from the Russian embassy in the United States on Telegram. But Russian oil will still be in demand. Russia had warned in advance that it would no longer supply oil to countries that introduced a cap. President Vladimir Putin spoke of the impending "serious consequences" for the global energy market.

Yermak, however, was unimpressed. "We always achieve our goal, and Russia's economy will still be destroyed. And Russia itself will pay and be responsible for crimes," he wrote on Telegram.

The G7, Australia and the EU countries had previously agreed on the level of a price cap for Russian oil. Together with international partners, they want to force Russia to start selling oil to buyers in other countries for a maximum of USD 60 per barrel from Monday.

The White House welcomed the agreement: The price cap will help limit the Kremlin's ability to "profit from the oil market so that it can continue to fund a war machine that continues to kill innocent Ukrainians," said National Security Council spokesman John Kirby. EU Commission chief Ursula von der Leyen said the cap would also “directly benefit emerging and developing countries” because they can get Russian oil at prices below the cap.

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