The sanction does not seem, for the time being, very convincing.
On Monday, Kremlin spokesman Dmitry Peskov assured that the cap on the price of Russian oil decided by Western countries would have "no impact" on Moscow's offensive in Ukraine.
The Russian economy “has all the necessary capacities” to finance the war, he assured the press.
“On the other hand, these measures will undoubtedly have an impact on the stability of the world energy market (…).
This is a step towards their destabilization,” warned Dmitri Peskov, adding that Moscow was “preparing” retaliatory measures.
The European Union, the G7 countries and Australia have agreed to cap the price of Russian oil, a measure which is due to come into force from Monday.
The stated objective of this new sanction is to dry up part of the colossal income that Moscow derives from the sale of its hydrocarbons and thus reduce its ability to finance the war effort in Ukraine.
Start of the embargo
The mechanism adopted provides that only Russian oil sold at a price equal to or lower than 60 dollars per barrel can continue to be delivered.
Beyond that, it will be prohibited for companies based in EU countries, the G7 and Australia to provide services allowing maritime transport (trading, freight, insurance, shipowners, etc.).
In fact, the G7 countries provide insurance services for 90% of global cargoes and the EU is a major player in maritime freight - hence their ability to pass on this cap on the oil delivered to the majority of customers of Russia around the world, a credible deterrent.
Read alsoEuropean embargo on Russian oil: a measure more symbolic than economic?
The activation of a cap coincides with the entry into force on Monday of an EU embargo on Russian oil transported by sea.
The Kremlin has already warned that it will no longer deliver oil to countries that adopt the capping mechanism, a position reaffirmed on Sunday by Russian Deputy Prime Minister in charge of Energy, Alexander Novak.
