Kremlin: Russia still considering response to oil price cap

Moscow had originally planned to publish a presidential decree outlining its response – including a possible ban on selling oil to countries that comply with the cap – last week, Kremlin spokesman Dmitry Peskov had told reporters.

Officials including President Vladimir Putin have heavily criticised the move and vowed to block exports to those that observe the cap, but Peskov said on Monday Russia was still weighing up other options.

“There is some groundwork that has been put down on paper, but there are also additional proposals that are being considered and discussed,” he told reporters on Monday.

“We still have the task of working out what measures will best suit our interests. The work is ongoing, but it is close to completion.”

The price cap, imposed by the United States, European Union and Australia, bans companies from providing insurance or logistics for Russia’s seaborne oil exports where the price paid is above $60 a barrel.

The EU – which previously accounted for almost half of Russia’s crude and petroleum exports – has separately imposed its own embargo on Russian oil, which it says will reduce purchases by 90%.

Russia’s Urals crude blend has been trading at a steep discount to the global benchmark Brent since Russia invaded Ukraine, and most recently below $60 cap, according to Russian government data.

Despite the EU cutting imports, oil remains Russia’s main export and source of government revenue.