**EU’s Proposed Lower Oil Price Cap Not Helpful, Says Kremlin**
The European Commission has proposed a new package of sanctions against Russia, including a lower price cap on Russian oil. However, this move is not expected to stabilize global energy markets, according to Kremlin spokesman Dmitry Peskov.
Peskov made these comments during a daily conference call with reporters on Wednesday. He described the EU’s proposal as “illegal” and said that it would not help in stabilizing international energy markets or the oil market. Russia has been under various restrictions for many days, which the country still considers to be illegal.
Russia has gained some experience in minimizing negative consequences from such decisions, Peskov added. The EU’s proposed lower price cap on Russian crude oil is a move to cut the country’s energy revenues. However, this move may not have the desired effect, as Russia’s estimated Urals crude price has already stabilized below the current cap of $60 per barrel since early April.
**Russia’s Oil Exports**
According to the Finland-based Centre for Research on Energy and Clean Air, China had bought 47% of Russia’s crude exports as of the end of April. India followed with 38%, while the EU purchased only 6%. Turkey also bought 6% of Russian crude exports during this period.
The think tank noted that the lack of proper monitoring and enforcement along with rising oil prices have increased Russia’s export revenues to fund its war against Ukraine. Ukrainian drone attacks on Russia’s energy infrastructure, particularly on oil refineries, have had a greater impact and resulted in sea-borne oil product exports declining by almost 10% last year.
**Global Energy Market Impact**
The EU has banned Russian-sourced oil purchases but has granted an exemption for Russian crude oil imported through the southern branch of the Soviet-built Druzhba pipeline to Hungary, Slovakia, and the Czech Republic. However, this move may not have a significant impact on global energy markets.
Peskov’s comments indicate that Russia is preparing for the possibility of continued Western sanctions. The country has already gained some experience in minimizing negative consequences from such decisions.
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