The Kremlin said on Monday that a Western price cap on Russian oil would destabilise global energy markets but would not affect Moscow's ability to sustain its military operation in Ukraine.

Kremlin spokesman 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 sea-borne exports of oil where the price is above $60 a barrel.

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