Moscow said it would not sell oil that is subject to the $60-a-barrel price limit agreed to by the G7 nations. The price cap is set to take effect today, the same day that the E.U. begins an embargo on Russian oil.
Supporters of the cap say it is likely to dent the Kremlin’s finances while keeping enough Russian crude on the market to avoid a global oil price shock; Russia’s defiance adds to questions over whether the plan will slow its war effort in Ukraine.
Alexander Novak, the Russian deputy prime minister, said the price cap would have a negative impact on the global market and would contradict W.T.O. rules.
“We will sell oil and oil products only to countries that will work with us on market conditions, even if we would have to lower production,” he told the Russian state media.
Questions already loomed over whether the new price cap could be enforced. It relies on each party in the supply chain of Russian oil to attest to the price of shipments. Insurers and shippers have warned that records may be falsified to keep Russian oil flowing.
Russia has repeatedly said it will ignore the policy and refuse to sell oil under a price cap.The $60-per-barrel threshold was a compromise: One group of European maritime nations had demanded the price cap be placed at or above $70 a barrel, to ensure that their business interests would not be disrupted; another group of pro-Ukraine countries had demanded the cap be set at or around $30 a barrel.
OPEC and its allies, including Russia, said they would leave their quotas for oil production unchanged. The group, known as OPEC Plus, appears to have decided that there was no reason to alter policy amid the many uncertainties in the oil market.