Russia will not export oil subject to Western cap

STORY: Russia, the world's second largest oil exporter, will not sell oil that is subject to a Western price cap -- even if it has to cut production.

Russia's Deputy Prime Minister made the announcement Sunday, after the G7 and Australia agreed on Friday to a $60 per barrel price cap on Russian seaborne crude oil, prohibiting shipping and insurance companies from handling cargoes of Russian crude above the cap.

The price cap aims to reduce Russia's income from selling oil, and prevent a spike in global oil prices... while pressuring Russian President Vladimir Putin over his war in Ukraine, more than nine months into the brutal conflict.

Russia called the cap a gross interference that would destabilize global energy markets.

Putin in September warned the West that he could cut off energy supplies if price caps were imposed, telling them that Europe would freeze.

On Saturday, Ukrainian President Volodymyr Zelenskiy said the $60 price cap on Russian oil is not serious and will do little to deter Russia from waging war in Ukraine.