The Kremlin warned the West on Monday that it would retaliate over a G7 proposal to impose a cap on the price of Russian oil.

“There can only be retaliatory measures,” Kremlin spokesman Dmitry Peskov told reporters.

Group of Seven finance ministers agreed the cap on Friday in a bid to pressure Russia over its actions in Ukraine, but Moscow has vowed to halt sales to countries imposing it.

Peskov said last week that Russia was studying how a price ceiling on its oil exports would affect its economy and warned the move would destabilize the global oil market.

A senior economic adviser to Ukrainian President Volodymyr Zelenskiy welcomed the development and told Reuters the cap was needed to curb Moscow’s revenues.

Before Russia sent tens of thousands of troops into Ukraine in February, around half of Russia’s crude and petroleum product exports went to Europe, according to the International Energy Agency.
Source: Reuters (Reporting by Reuters; editing by Guy Faulconbridge)