Kremlin says it is not seeing a case of oil price cap

MOSCOW — The Kremlin on Wednesday said it had yet to see a case of the Russian oil price cap imposed by the West last month, in a comment about possible losses from such measures.

Some analysts have previously said the cap would have little direct impact on Moscow’s current oil revenues.

Russia’s flagship Ural crude oil blend is currently trading below the $60 per barrel price cap level imposed by the West as part of sanctions against Russia over its military actions in Ukraine.

“As far as losses are concerned, no one has yet seen a particularly cap,” Kremlin spokesman Dmitry Peskov said at a daily press conference.

The price cap would allow non-EU countries to continue to import Russian seaborne crude oil, but shipping lines, insurers and reinsurers would not allow cargoes of Russian crude oil to ship worldwide unless sold for less than $60. Handling is prohibited.

Russian President Vladimir Putin last month signed a decree banning the supply of crude oil and petroleum products to countries complying with the cap for five months from 1 February.

Russian oil is traditionally sold at a discount to international benchmarks such as Brent. The discount has widened following Western sanctions imposed over the conflict in Ukraine and is now around $25-$30 a barrel compared to Brent.