EU's Price Cap on Russian Oil: Impact and Reactions

The European Commission's recent move to lower the price cap on Russian oil to $45 per barrel is sparking controversy. Kremlin spokesman Dmitry Peskov denounced the proposal, asserting that such Western sanctions are illegal and won't contribute to the stabilization of global energy markets.

The proposal, discussed ahead of a Group of Seven nations leaders meeting in Canada, aims to reduce Russia's energy revenue in response to its actions in Ukraine. Despite these measures, Russia continues to adapt, with significant oil exports going to China and India.

The EU has largely banned Russian oil but allows imports through specific pipelines to Hungary, Slovakia, and the Czech Republic. Meanwhile, the absence of stringent monitoring has allowed Russia to increase export revenues, even amidst Ukrainian drone attacks affecting oil infrastructure.

(With inputs from agencies.)