Russians won't accept EU's $60 oil cap

According to the state news agency Tass, Russians will not accept the $60 per barrel price cap for crude oil agreed upon by the European Union.

It was the Kremlin's first reaction after European diplomats decided on the threshold on Russian oil Friday evening after long negotiations.

The cap will ban companies from providing services to Russian oil shipments, including shipping and insurance, unless it is sold below the agreed level.

Peskov said on Saturday that they were analyzing it now. There has been preparation for such a cap. We will not accept this cap. After the analysis is complete, Moscow will announce how the work will be organized, Peskov said.

A person with knowledge of the matter said at the end of last month that the Kremlin has been drafting a presidential decree that prohibits Russian companies from selling the nation's crude from selling it to anyone that participates in a price cap mechanism.

The decree would ban any reference to a price cap on contracts for Russian crude oil or products, and prohibit loadings destined for countries that adopt the restrictions.

In November, Alexander Novak, Deputy Prime Minister, said Russia would reduce its production or redirect its oil supply to market-oriented partners.

Russia s flagship crude oil rallied to just above $50 a barrel on Thursday, but has been well below the European Union's $60 price cap for almost two weeks.