Washington's Role in Western Price Cap on Russian Oil
Washington was one of the main contributors in implementing the Western price cap on Russian oil to reduce Moscow's funding for its invasion of Ukraine.
Kremlin's Stance on Price Cap
Kremlin spokesman Dmitry Peskov stated, "We do not and will not recognize any cap. We are working so this system does not harm our interests."
Impact of Price Cap on Russia's Economy
Despite being resilient to Western sanctions, the price cap has made it difficult for Russia to sell its oil globally. Russia, which accounts for 10% of global oil supplies, announced a cut in oil output by 500,000 barrels per day in March due to the price cap.
U.S. Argues Price Cap is Working
U.S. Energy Envoy Amos Hochstein stated, "I think the beauty of the process is that it is working and that Russian oil and Russian products are being traded below the price cap." Russia's Urals blend, a benchmark of Moscow's exports, sells at a steep discount compared to the international marker Brent.
