Kremlin spokesperson Dmitry Peskov said Russia was preparing how it would respond to the move by the G7 and allies to ban countries and companies from dealing with Russian seaborne exports of oil where the price is above US$60 a barrel.

“Russia and the Russian economy have the required capacity to fully meet the needs and requirements of the special military operation,” Peskov told reporters today when asked whether the price cap would affect Russia’s military campaign in Ukraine.

Russia calls its actions in Ukraine a “special military operation.”

He added that the price cap would “completely destabilise” the global energy markets, and told Europeans that should brace themselves for higher prices.

Global benchmark Brent crude was up 1.7% at US$87.01 a barrel today, following the European Union’s move to adopt the price cap on Russian oil – which also bans European insurers from providing coverage policies to tankers carrying Russian oil at prices above the threshold.

Several Russian officials have previously said Moscow will not sell oil to countries that abide by the cap.