Russia says oil price cap ‘not a tragedy’

Russia expressed confidence Tuesday it would find new buyers for its oil, saying the imposition of a price cap on its exports by the West over Ukraine was “not a tragedy.”

The price ceiling that came into force on Monday seeks to restrict Russia’s revenue as punishment for its assault on Ukraine, while making sure Moscow keeps supplying the global market.

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“I have no doubt that there will be buyers for our product,” Deputy Foreign Minister Sergei Ryabkov told reporters, adding that the Russian authorities had prepared for the introduction of the price cap.

“We will see how the market will react, but in any case, our interests in this area will be secured in one way or another,” Ryabkov was quoted as saying by Russian news agencies.

Deputy Prime Minister Alexander Novak for his part reiterated that the cap would inevitably lead to price hikes.

He admitted that logistics will be affected.

“Russian oil has always been in demand and will continue to be in demand,” Novak told reporters.

“We do not see any tragedy here.”

The price cap means only oil sold at a price equal to or less than $60 per barrel can continue to be delivered.

The Kremlin said on Monday the measure would not affect Russia’s military operation in Ukraine.

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