On December 5, the price cap on Russian oil by Western countries came into force, and the European embargo on the supply of Russian crude oil by sea also begins to take effect. The price cap on Russian oil products will come into force on February 5.
After lengthy negotiations, the EU managed to agree on price cap for Russian oil at $ 60 per barrel. It was approved by the G7 countries, Australia and the European Union.
Disputes erupted over the position of the most Russophobic states. Warsaw insisted on setting the maximum price at $30 per barrel. In their turn, countries with a developed shipping industry, like Malta and Greece, did not agree to lower the limit below $70. About 50% of Russian oil exported by sea is transported by Greek shipowners.
The US Treasury explained that the price cap of $60 per barrel is high enough for Moscow to have an economic incentive to continue supplying fuel to world markets.
The price will be reviewed every two months in order to respond to possible “turbulence” in the oil market and assess if the measure is effective in its main goal, to reduce the financing of military operations in Ukraine.
European providers who intentionally violated the price cap will be prohibited from transportation of Russian raw materials for 90 days.
Thus, Russian suppliers will have to agree to sell oil at a price not higher than the established limit or turn to expensive services of companies outside the G7.
The EU’s decision has just come into force, but the first member country refused to take part in it. Hungary has achieved an exemption from the application of the price cap, which could become a precedent for other countries. The Hungarian Foreign Minister said that it is high time for Brussels to realize that such measures harm the European economy.
Before the sanctions were imposed, the EU, the US and the UK imported two-thirds of Russian oil and petroleum products.
In September, shipments to the EU accounted for only 24% of the total volume of sea shipments of Russian Ural oil. During the summer, India, China and Turkey increased exports of Russian crude oil by 1.2 million barrels per day, partially compensating for the reduction in supplies to Europe.
The price of $60 per barrel is acceptable for the Russian budget, as this level of oil prices is included in the draft budget law for 2023-2025. According to various experts, such a cap will not allow Russians to receive any excess income, but also does not pose any major threats to budget revenues.
In its turn, the Kremlin has previously claimed that Russia will not accept the price cap. Moscow refuses to supply energy to countries that make political decisions that contradict the terms of signed contracts.
254 views
72
14
2 months ago 00:00:00 14
LIVE: PUTIN JINPING | Xi in Moscow To Meet Putin & For Russia’s Victory Day Celebrations | TNW LIVE
8 months ago 00:18:50 0
The Power of Diesel: Inside the Engine | Shell Historical Film Archive
8 months ago 11:54:59 0
Israel Iran War News LIVE | Israel Warns To Bomb Iran Oil Fields | Israel Vs Iran LIVE | N18G
8 months ago 00:07:31 0
AUC3I - Daily Briefing 10-25-2024 On the WAR in Ukraine
8 months ago 00:05:01 0
‘Iran Getting Ready For War With Israel; 1000-Ballistic Missile Strike Among Many Plans’
8 months ago 00:10:32 0
Starmer’s Pro Israel Excuses Hit A SHAMELESS New Low!
8 months ago 01:13:58 0
Defeating 7 Brutal Mordor Bots - LOTR BFME 2
8 months ago 00:00:51 0
Modern Age 2
8 months ago 00:10:11 0
WE FOUND abandoned TRAINS in the USSR depot
9 months ago 03:01:22 1
Inside the french mafia - Revealing The Untold Dark Side Of Fench Society - Full Documentary - Y2
9 months ago 00:01:00 1
Я узнал, что у меня, нет в России ни х... Я дізнався, що у мене немає в Росії ні х... #shorts
9 months ago 03:26:42 0
John Mearsheimer: Israel-Palestine, Russia-Ukraine, China, NATO, and WW3 | Lex Fridman Podcast #401
9 months ago 00:04:53 0
Песня Багровый ZAкат / Письмо Пукина Тихому (English subtitles)
9 months ago 00:48:51 0
Chazaria i Germania na wojennej ścieżce - K8D(46) ś,
9 months ago 00:03:41 0
Rage Against The Machine - Guerrilla Radio (Official HD Video)
9 months ago 08:54:22 0
Iran Vs Israel War LIVE | | Israel Warns To Bomb Iran Oil Fields | Israel Vs Iran War LIVE | N18G
9 months ago 02:36:23 0
ÚLTIMA HORA: RUSIA DESTRUYE INSTALACIONES MILITARES DE UCRANIA. PUTIN: GANAREMOS. ISRAEL ATACADA
9 months ago 00:34:16 0
JOHN RUBINO (PART 1) | The FUTURE of global finance IS GOLD!
9 months ago 00:00:00 0
DURO GOLPE A ISRAEL: SUS TANQUES SON DESTRUIDOS EN LÍBANO. PROVOCACIÓN NUCLEAR DE UCRANIA A RUSIA
9 months ago 00:00:00 0
ÚLTIMA HORA: IRÁN DISPUESTO. HARÁ ARREPENTIRSE A ISRAEL. ZELENSKI EN RIDICULO. UCRANIA
9 months ago 00:02:08 0
LITTLE BIG – GENERATION CANCELLATION (Official Music Video)
9 months ago 00:02:11 0
Russia-Ukraine War: Ukraine Targets Oil Terminal In ’Occupied Crimea’ Region | World DNA | WION
9 months ago 00:42:01 0
Lawrence Wilkerson LEAKS: Russia’s Nuclear Is Hiding in Iran! U.S Destroyed Middle East, Not Israel?
9 months ago 00:00:00 0
ÚLTIMA HORA: ISRAEL TIEMBLA. PUTIN ENTRA EN JUEGO. NUEVA ALIANZA DE RUSIA CON IRÁN