Kremlin Says It Hasn’t Seen Cases of Oil Price Caps

MOSCOW—The Kremlin said on Wednesday it had not yet seen any cases of price caps on Russian oil imposed by the West last month, in comments about possible losses from such measures.

Analysts have stated that the caps won’t have any immediate effect on the oil revenues Moscow currently earns.

Current Russian flagship Urals crude mix is trading below the $60/barrel price limit, which has been imposed by West as part the sanctions Moscow for its military actions Ukraine.

“As far as the losses are concerned, no one has especially seen the caps yet,” Dmitry Peskov, Kremlin spokesperson, told reporters during a daily briefing.

The price cap allows non EU countries to continue importing Russian seaborne crude oil. However, it prohibits shipping, insurance and reinsurance companies from handling cargoes containing Russian crude oil around the world.

Vladimir Putin, the Russian President, signed last month a decree prohibiting crude oil supply from February 1st for five years to any country that does not adhere to the cap.

Russian oil has been traditionally sold at a lower price than international benchmarks like Brent. The discount has widened following the Western sanctions imposed over the conflict in Ukraine and now stands at some $25–$30 per barrel to dated Brent.

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