Putin Warns Of 'Serious Consequences' For Global Energy Market From West's Oil Price Cap Push In Iraq Talks

The Kremlin said Russian President Vladimir Putin discussed the West’s attempts to cap the price of Russian oil, on Thursday, in a phone call with the new Iraqi prime minister.

What Happened: The presidential palace, in a readout of the call, said the Russian leader warned Mohammed Shia al-Sudani that a price cap would have serious consequences for the world's energy market.

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“Attempts by a number of Western countries to impose restrictions on the cost of crude oil from Russia were touched upon,” the statement said.

“Vladimir Putin stressed that such actions contradict the principles of market relations and are highly likely to lead to serious consequences for the global energy market,” it added.

This came after European Union and the U.S. stepped to set a price cap on their imports of Russian oil. The move is part of sanctions intended to limit fossil fuel earnings for Russia, so it has less money to finance its war in Ukraine.

Meanwhile, the U.S. treasury secretary, who recently visited India, said the country would “benefit” from the proposed price cap on oil. Arguing that the U.S. does not want the Russian leader to “profit unduly” from the war in Ukraine, Janet Yellen said Washington wants to hold down the price Russia receives for its oil and keep that oil trading.

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