The statement said the price cap is a violation of “fundamental principles of how free markets operate” and will lead to increased uncertainty and higher costs for commodity consumers.

“Despite the current flirtation with a dangerous and illegal instrument, we are confident that our oil will continue to be in demand,” the embassy believes.

A coalition of Western nations, led by the G7, agreed to cap the price of Russian offshore oil at $60 a barrel in a bid to limit Moscow’s income and limit its ability to finance its invasion of Ukraine.

The G7 price cap would allow non-EU countries to continue importing Russian oil by sea, but would prevent shipping, insurance and reinsurance companies from handling cargoes of Russian oil around the world unless it is sold for less than the cap.

Russian President Vladimir Putin and senior Kremlin officials have repeatedly said they will supply oil to countries that set price ceilings.