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The price cap that was imposed on Russian oil abroad is unacceptable for Russia, but Moscow will be analyzing it and deciding how to operate under the new circumstances, Kremlin spokesperson Dmitry Peskov said Saturday.

The European Union reached an agreement on setting a price cap on Russian oil at $60 a barrel, keeping a review mechanism to keep the price cap at 5% under market value. 

"We will not accept this ceiling. How will we organize the work? We will make a relevant announcement after an analysis, which will be done promptly," Peskov told reporters.

Major oil producers are expected to adhere to their current output strategy and even cut down oil production further in their coming meeting on Sunday amid falling oil prices, a coming Russian oil price cap, and sanctions.

The last time OPEC+ convened in October, a decision spearheaded by Saudi Arabia and Russia cut oil production by 2 million barrels per day starting November. 

The OPEC+ oil production reduction is the most substantial cut since the COVID-19 pandemic peak in 2020. 

Moscow was anticipating the price cap and is now analyzing the situation, the spokesman underlined.]

Mobilization completed

There is no new information regarding mobilization in Russia, as it is already completed, Peskov added.

"There is no information regarding this, you all know that the president declared it over," Peskov told journalists.

The Russian Defense Ministry said in late October that Russia completed conscription for military service within partial mobilization. In November, President Vladimir Putin confirmed that partial mobilization in Russia was over after Defense Minister Sergei Shoigu informed him that the goal was complete.

It's noteworthy that Russian President Vladimir Putin signed a decree on 21 September to initiate a partial mobilization in Russia as the war in Ukraine continues, while the decree, according to Putin, allowed the government to quickly alter the mechanisms to fulfill the demands of the Ministry of Defense.

The third of a million soldiers is a little more than 1% of Russia's available manpower, which Moscow said was necessary for controlling the liberated territories in the Donbass and the line of contact around a mile away.

Europe to live without Russian oil

Russia's Permanent Representative to International Organizations in Vienna, Mikhail Ulyanov, declared earlier in the day that the European Union will have to live without Russian oil starting this year as a repercussion of the price cap imposed on the country's oil.

He also recalled how Moscow had made it clear that it will supply oil to the countries that supported the price cap that he described as "anti-market".

Starting from this year #Europe will live w/o Russian oil. #Moscow has already made it clear that it will NOT supply #oil to those countries who support anti-market price cap. Very soon the #EU will blame #Russia for using oil as a weapon.

— Mikhail Ulyanov (@Amb_Ulyanov) December 3, 2022

Western nations have been trying to find ways to reduce Russia's income from oil and gas exports since the start of the war in Ukraine.

Russia had pledged to stop exporting its oil to countries that would apply price caps on its oil.

Meanwhile, those who violate the price cap on Russian oil exports will suffer consequences under the domestic law of the jurisdictions enforcing the quota, according to US Deputy Treasury Secretary Wally Adeyemo.