Russian oil price cap will hit Putin immediately
Price cap set by his G7 group (US, Canada, UK, France, Germany, Italy, Japan, European Union) in September to affect Moscow’s ability to finance war in Ukraine It was made.
The European Union on Friday approved a price cap that requires the consent of all member states after persuading Poland to back off.
US Treasury Secretary Janet Yellen said the cap, officially approved by Western allies on Friday, came after months of hard work.
It is expected to go into effect on or shortly after December 5th.
Yellen said low- and middle-income countries hit hard by high energy and food prices would particularly benefit from the cap.
To avoid further straining Russian President Vladimir Putin’s finances and disrupting global supplies and triggering a global crisis, she said that “he has been forced to fund his brutal attacks.” Limit the income you’re using,” he said. Gasoline prices could rise.
“Russia’s economy is already shrinking, the budget is getting thinner and thinner, and the price cap will immediately cut President Putin’s most important source of income,” he said in a statement.
The cap would prevent countries from paying more than $60 (£48) a barrel for Russian oil exports at sea.
Poland voiced its support after being assured that the cap would remain 5% below market rates.
It was reported that the EU wanted to set the cap at $65-70, but was rejected by Poland, Lithuania and Estonia as too high.
Warsaw wanted the price to be as low as possible, so it explored adjustment mechanisms that would keep the range below the market rate as oil prices changed.
The G7, European Union and Australia said in a joint statement that the decision to impose the price cap was taken “to prevent Russia from profiting from a war of aggression against Ukraine“.
British Prime Minister Jeremy Hunt said the UK had no intention of withdrawing aid and would continue to look for new ways to “block the flow of Putin’s money”.
The price cap deal comes just days before an EU-wide ban on seaborne imports of Russian crude that takes effect on 5 December.
Ukraine’s Western allies also plan to deny insurance to tankers carrying Russian oil to countries that do not adhere to price caps. increase.
Russia has condemned the plan, saying it will not supply to countries that impose price caps.
Price limits are intended to affect oil exports around the world and complement this.
Countries that have signed the G7-led policy will only be allowed to purchase seaborne oil and petroleum products that are sold below the price cap.
Leonid Slutsky, a senior Russian politician who heads the Foreign Relations Committee, told TASS news agency that the EU was endangering its energy security with the cap.
The move will certainly affect Russia, but the blow will be partially softened by oil sales in other markets such as India and China, which are currently the largest single buyers of Russian crude. wax.
Russian oil price cap will hit Putin immediately
Also Read:- Heaviest fighting continues in eastern Ukraine: Report 01Dec 2022
(Except for the headline, this story has not been edited by News East India staff and is published from a syndicated feed.)
