Putin: the ceiling on the price of Russian oil could lead to disastrous consequences

Russian President Vladimir Putin said, in a telephone conversation with Iraqi Prime Minister Muhammad al-Sudani on Thursday that attempts to cap Russian oil prices could lead to dire consequences, according to Russian news agency Tass.

The Kremlin said Putin stressed that such measures contradict market principles and are likely to lead to dire consequences for global energy markets.

EU ambassadors failed to agree on Wednesday on introducing a cap on the price of Russian oil, but negotiations are continuing.

Sources said the ambassadors discussed the possibility of capping the price of Russian oil in the $65-70 a barrel range.

The discussions revealed a deep divide between countries that want to punish Russia for the invasion of Ukraine, such as Poland and the Baltic states, which consider this ceiling too high, and countries that benefit from oil transport services such as Greece, Cyprus, Malta and others, who find the threshold level too low and threaten to undermine global oil trade.