Russia rejects price cap of $60 a barrel on oil, threatens cutoffs

"One thing is obvious and indisputable: the adoption of these decisions is a step towards destabilizing world energy markets," a Kremlin spokesman said.

Updated: December 5, 2022 - 10:29am

The Facts Inside Our Reporter’s Notebook

Kremlin spokesman Dmitry Peskov on Monday rejected any price caps on oil after dozens of Western nations set the limit for Russian oil at $60 per barrel. 

"One thing is clear - we will not recognize any ceilings," Peskov told reporters, according to a translated report from Russian state-run agency Tass. "The adoption of these decisions is a step towards destabilizing world energy markets."

Mikhail Ulyanov, Russia's ambassador to international organizations in Vienna, threatened Saturday to cut off Europe's oil supply.

"Starting from this year #Europe will live w/o Russian oil," he tweeted. "#Moscow has already made it clear that it will NOT supply #oil to those countries who support [an] anti-market price cap."

The United States, Australia, Britain, Canada, Japan and the 27-member European Union agreed to institute $60 per barrel price caps on Russian oil starting Monday, ABC News reported. The EU also has a ban on Russian oil shipped by sea. 

Russia's response comes as OPEC+ said Sunday it would continue with current decreased oil production levels.

Oil prices are up 3% as of Monday morning, at $88.10 a barrel, according to Reuters.