Sat 03 December 2022:
Russia said that it will continue to find buyers for its oil despite “dangerous” attempts by Western governments to put a price cap on its exports.
The Group of Seven (G7) nations, Australia and the European Union agreed on a $60 per barrel price cap on Russian seaborne crude oil, aiming to curb Russia’s ability to finance its war against Ukraine through energy sales.
Russia’s embassy in the United States criticised the decision on Telegram, saying it was the “reshaping” of free market principles but its oil would continue to be in demand.
The price cap, previously negotiated on a political level between the G7 group of wealthy democracies and the European Union, will come into effect with an EU embargo on Russian crude oil from Monday.
Poland had refused to back the price cap plan over concerns the ceiling was too high, before its ambassador to the EU confirmed Warsaw’s agreement on Friday evening.
The embargo will prevent shipments of Russian crude by tanker vessel to the EU, which account for two thirds of imports, potentially depriving Russia’s war chest of billions of euros.
The G7 said it was delivering on its vow “to prevent Russia from profiting from its war of aggression against Ukraine, to support stability in global energy markets and to minimise negative economic spillovers of Russia’s war of aggression”.
The White House described the deal as “welcome news”, saying a price cap will help limit Russian President Vladimir Putin‘s ability to fund the Kremlin’s “war machine”.
Necessary to lower it to $30’ per barrel
The price cap on Russian seaborne crude oil agreed to by Western countries should be lowered to $30 per barrel to hit Russia’s economy harder, a senior Ukrainian presidential aide said.
“This was everything that was proposed by the McFaul-Yermak group, but it would be necessary to lower it to $30 to destroy the enemy’s economy quicker,” Andriy Yermak, the head of Ukraine’s presidential administration, wrote on Telegram, referencing an international working group on sanctions.
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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