Russia says the plan to cap oil prices will 'collapse' as West scrambles to cut off funding for Kremlin's war in Ukraine

• Russia's deputy foreign minister said the plan by Western countries to cap its oil prices will "collapse."
• The US and its allies discussed a cap on Russian oil prices at the G-7 summit last week, with a potential range of $40-$60 a barrel.

Russia suggested Thursday that plans by Western nations to cap its oil prices and limit its ability to wage war against Ukraine will fail.

Sergei Ryabov, Russia's deputy foreign minister, told the Interfax news agency that a price cap on Russian oil products will "collapse" and the country would continue to raise revenue for its budget, Reuters reported.

The US and its allies began discussing a cap on Russian oil prices at the G-7 summit last week, with a potential range of $40-$60 a barrel. The intent is to limit Russia's revenue while still making oil accessible to sanctioning countries.

But industry analysts have doubted the plausibility of a price cap, noting that it would require cooperation from some of Russia's largest oil customers, such as China and India.

And last week, RBC commodities strategist Helima Croft also said Russia could retaliate by taking more barrels off the market abruptly to drive prices higher. In that situation, oil could skyrocket to as high $380 a barrel, according to analysts by JPMorgan.

Meanwhile, former Russian President Dmitry Medvedev, who is now the deputy secretary of Russia's Security Council, quoted a Bible verse as he suggested the US would face the wrath of God for punishing Russia for its war on Ukraine.