Russia rejects $60-a-barrel cap on its oil, warns of cutoffs

Dec 2, 2022, 3:40 PM | Updated: Dec 3, 2022, 1:06 pm

              Workers repair electricity cables damaged during shelling by Russian forces in Kherson, Ukraine, Saturday, Dec. 3, 2022. (AP Photo/Evgeniy Maloletka)
            
              Ukrainian servicemen walk near a destroyed bridge across the Inhulets river in Kherson region, Ukraine, Saturday, Dec. 3, 2022. (AP Photo/Evgeniy Maloletka)
            
              A young man peeks out of a heating tent, a “Point of Invincibility,” a government-built help station, in Kherson, Ukraine, Saturday, Dec. 3, 2022. (AP Photo/Evgeniy Maloletka)
            
              People charge their phones at a heating tent, a “Point of Invincibility,” a government-built help station that serves food, drinks and warmth, in Kherson, Ukraine, Saturday, Dec. 3, 2022. (AP Photo/Evgeniy Maloletka)
            
              Ukrainian servicemen walk on a pontoon bridge across the Inhulets river in Kherson region, Ukraine, Saturday, Dec. 3, 2022. (AP Photo/Evgeniy Maloletka)
            
              Soldiers who were recently mobilized by Russia for the military operation in Ukraine stand at a ceremony before boarding a train at a railway station in Tyumen, Russia, Friday, Dec. 2, 2022. Russian President Vladimir Putin's order to mobilize reservists for the conflict prompted large numbers of Russians to leave the country. (AP Photo)
            
              Soldiers who were recently mobilized by Russia for the military operation in Ukraine stand at a ceremony before boarding a train at a railway station in Tyumen, Russia, Friday, Dec. 2, 2022. Russian President Vladimir Putin's order to mobilize reservists for the conflict prompted large numbers of Russians to leave the country. (AP Photo)
            
              A soldier embraces a woman as other soldiers who were recently mobilized by Russia for the military operation in Ukraine gather before boarding a train at a railway station in Tyumen, Russia, Friday, Dec. 2, 2022. Russian President Vladimir Putin's order to mobilize reservists for the conflict prompted large numbers of Russians to leave the country. (AP Photo)
            
              Soldiers who were recently mobilized by Russia for the military operation in Ukraine pose for a photo after a ceremony before boarding a train at a railway station in Tyumen, Russia, Friday, Dec. 2, 2022. Russian President Vladimir Putin's order to mobilize reservists for the conflict prompted large numbers of Russians to leave the country. (AP Photo)
            
              An aircraft that was destroyed during fighting between Ukrainian and Russian forces is seen at the Kherson international airport in Kherson, Ukraine, Friday, Dec. 2, 2022. (AP Photo/Evgeniy Maloletka)
            
              A building, part of the Kherson international airport is seen damaged during fighting between Ukrainian and Russian forces in Kherson, Ukraine, Friday, Dec. 2, 2022. (AP Photo/Evgeniy Maloletka)
            
              An aircraft that was destroyed during fighting between Ukrainian and Russian forces is seen at the Kherson international airport in Kherson, Ukraine, Friday, Dec. 2, 2022. (AP Photo/Evgeniy Maloletka)
            
              A car destroyed by Russian shelling sits in a field in Posad-Pokrovske village, in the Kherson region, Ukraine, Friday, Dec. 2, 2022. (AP Photo/Evgeniy Maloletka)

Workers repair electricity cables damaged during shelling by Russian forces in Kherson, Ukraine, Saturday, Dec. 3, 2022. (AP Photo/Evgeniy Maloletka)

(AP Photo/Evgeniy Maloletka)

KYIV, Ukraine (AP) — Russian authorities rejected a price cap on the country’s oil set by Ukraine’s Western supporters and threatened Saturday to stop supplying the nations that endorsed it.

Australia, Britain, Canada, Japan, the United States and the 27-nation European Union agreed Friday to cap what they would pay for Russian oil at $60-per-barrel. The limit is set to take effect Monday, along with an EU embargo on Russian oil shipped by sea.

Kremlin spokesman Dmitry Peskov said Russia needed to analyze the situation before deciding on a specific response but that it would not accept the price ceiling. Russia’s permanent representative to international organizations in Vienna, Mikhail Ulyanov, warned that the cap’s European backers would come to rue their decision.

“From this year, Europe will live without Russian oil,” Ulyanov tweeted. “Moscow has already made it clear that it will not supply oil to those countries that support anti-market price caps. Wait, very soon the EU will accuse Russia of using oil as a weapon.”

The office of Ukrainian President Volodymyr Zelenskyy, meanwhile, called Saturday for a lower price cap, saying the one adopted by the EU and the Group of Seven leading economies didn’t go far enough.

“It would be necessary to lower it to $30 in order to destroy the enemy’s economy faster,” Andriy Yermak, the head of Zelenskyy’s office, wrote on Telegram, staking out a position also favored by Poland — a leading critic of Russian President Vladimir Putin’s war in Ukraine.

Under Friday’s agreements, insurance companies and other firms needed to ship oil would only be able to deal with Russian crude if the oil is priced at or below the cap. Most insurers are located in the EU and the United Kingdom and could be required to observe the ceiling.

Russia’s crude has already been selling for around $60 a barrel, a deep discount from international benchmark Brent, which closed Friday at $85.42 per barrel.

The Russian Embassy in Washington insisted that Russian oil “will continue to be in demand” and criticized the price limit as “reshaping the basic principles of the functioning of free markets.” A post on the embassy’s Telegram channel predicted the per-barrel cap would lead to “a widespread increase in uncertainty and higher costs for consumers of raw materials.”

“What happens in China will help shape whether the price cap has any teeth,” said Jim Burkhard, an oil markets analyst with IHS Markit. He said dampened demand from China means most Russian crude exports are already selling below $60.

The price cap aims to put an economic squeeze on Russia and further crimp its ability to finance a war that has killed an untold number of civilians and fighters, driven millions of Ukrainians from their homes and weighed on the world economy for more than nine months.

The General Staff of the Ukrainian Armed Forces reported that since Friday Russia’s forces had fired five missiles, carried out 27 airstrikes and launched 44 shelling attacks against Ukraine’s military positions and civilian infrastructure.

Kyrylo Tymoshenko, the deputy head of the president’s office, said the attacks killed one civilian and wounded four others in eastern Ukraine’s Donetsk region. According to the U.K. Defense Ministry, Russian forces “continue to invest a large element of their overall military effort and firepower” around the small Donestsk city of Bakhmut, which they have spent weeks trying to capture.

In southern Ukraine’s Kherson province, whose capital city of the same name was liberated by Ukrainian forces three weeks ago following a Russian retreat, Gov. Yaroslav Yanushkevich said evacuations of civilians stuck in Russian-held territory across the Dnieper River would resume temporarily.

Russian forces pulled back to the river’s eastern bank last month. Yanushkevich said a ban on crossing the waterway would be lifted during daylight hours for three days for Ukrainian citizens who “did not have time to leave the temporarily occupied territory.” His announcement cited a “possible intensification of hostilities in this area.”

Kherson is one of four regions that Putin illegally annexed in September and vowed to defend as Russian territory. From their new positions, Russian troops have regularly shelled Kherson city and nearby infrastructure in recent days, leaving many residents without power. Running water remained unavailable in much of the city — and one resident was seen scooping up water from a dirty puddle.

The city continued to suffer heavy shelling Saturday that left many residents disoriented, toppled power lines and dumped torn-off tree branches on the roads.

“When we start to repair (electricity networks), the shelling starts immediately,” said Oleksandr Kravchenko, who is in charge of high-voltage networks in Kherson. “We just repair electric lines and on the next day we have to repair lines again.”

Ukrainian authorities also reported intense fighting in Luhansk and Russian shelling of northeastern Ukraine’s Kharkiv region, which Russia’s soldiers mostly withdrew from in September.

The mayor of the city of Kharkiv, which remained under Ukrainian control during Russia’s occupation of other parts of the region, said some 500 apartment buildings were damaged beyond repair, and nearly 220 schools and kindergartens were damaged or destroyed. He estimated the cost of the damage at $9 billion.

Russian Defense Minister Sergei Shoigu met Saturday in Minsk with the president and defense minister of Belarus, which hosts Russian troops and artillery. Belarus has said its own forces are not taking part in the war, but Ukrainian officials have frequently expressed concern that they could be be induced to cross the border into northern Ukraine.

Belarusian President Alexander Lukashenko said at the meeting that his troops and Russian forces train in coordination. “We ready ourselves as one grouping, one army. Everyone knows it. We were not hiding it,” he was quoted as saying by the news agency Interfax.

___

Inna Varenytsia in Kherson, Ukraine, and Frank Bajak in Boston contributed to this report.

___

Follow AP’s coverage of the war in Ukraine: https://apnews.com/hub/russia-ukraine

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - The Starbucks logo is seen on a storefront, Friday, Oct. 14, 2022, in Boston Starbucks repor...
Associated Press

Starbucks misses sales, revenue estimates as China falters

Starbucks reported lower-than-expected sales in its fiscal first quarter, with COVID store shutdowns in China overshadowing stronger results elsewhere.
21 hours ago
The Amazon DTW1 fulfillment center is shown in Romulus, Mich., April 1, 2020. Amazon reports financ...
Associated Press

Amazon beats Q4 revenue estimates, but profits slump

Amazon on Thursday reported worse-than-expected profits, but its revenue beat expectations boosted by sales in North America businesses and the cloud-computing unit AWS.
21 hours ago
Associated Press

Today in History: FEB 4, Rosa Parks is born

Today in History Today is Saturday, Feb. 4, the 35th day of 2023. There are 330 days left in the year. Today’s Highlight in History: On Feb. 4, 1783, Britain’s King George III proclaimed a formal cessation of hostilities in the American Revolutionary War. On this date: In 1789, electors chose George Washington to be […]
21 hours ago
legislature...
Associated Press

Washington’s low-income tax credit available for first time

 Up to $1,200 is now available for thousands of low-income working Washington residents, thanks to a 2008 law that has finally been funded.
21 hours ago
In this undated photo, Nashville, Tenn., newsman Joe Edwards, who has been writing the "Nashville S...
Associated Press

Longtime AP country music chronicler Joe Edwards dies at 75

NASHVILLE, Tenn. (AP) — Journalist Joe Edwards, who chronicled country music and helped “Rocky Top” become a Tennessee state song during his four-decade Associated Press career, has died. He was 75. Longtime AP colleague Randall Dickerson said Edwards’ wife called him to share the news that her husband died Friday after a lengthy illness in […]
21 hours ago
Associated Press

N. Carolina Supreme Court to rehear voter ID, redistricting

RALEIGH, N.C. (AP) — The new Republican majority on North Carolina’s Supreme Court agreed on Friday to rehear redistricting and voter identification cases less than two months after the court’s previous edition, led by Democrats, issued major opinions going against GOP legislators who had been sued. The extraordinary decisions, granted in orders backed by five […]
21 hours ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Russia rejects $60-a-barrel cap on its oil, warns of cutoffs