Russian President Vladimir Putin warned during a phone call with Iraq’s prime minister on Thursday that Western plans to impose oil price caps could have “serious consequences” for energy markets.
“Vladimir Putin stressed that such actions are contrary to the principles of market relations and will most likely have serious consequences for global energy markets,” the Kremlin said in a reading of the Russian leader’s talks with Iraqi Prime Minister Mohammed Shia al-Sudani.
The Kremlin said both sides also spoke positively about the two countries’ work under OPEC+, which has helped “stabilize the world oil market.”
Western countries have imposed unprecedented sanctions on Russia since Putin dispatched troops to Ukraine on February 24.
On Tuesday, the US Treasury Department said Washington and its allies are now planning to set a price cap on Russian oil in “the next few days” as they seek to cut off a key source of funding for Moscow.
The price cap would be the basis of a ban, due to come into effect on December 5, that would ban companies from transporting or insuring Russian oil shipments sold above a fixed price.