Skip to main content

Brussels is to set a $ 60 cap.

 

Brussels is pushing EU member states to agree to a $60 a barrel ceiling on international purchases of Russian oil to seal a long-sought deal to curb the Kremlin’s revenues from fossil fuel. But EU diplomats said Warsaw, particularly keen to reduce Moscow’s income, was the main block in crunch talks ahead of a December 5 deadline, when a ban on Russian seaborne oil shipments into the EU comes into place. One said it was «worth fighting for a just cause, a more effective cap and stronger response to Russia than originally envisioned». The US championed the price-capping initiative, which also wants to avoid a sharp fall in Russian exports that would, in turn, spark an inflationary rise in crude prices.


Rather than directly affecting EU member states, which the import ban will constrain, it is designed to keep oil flowing to countries such as India and China. It is intended to have global reach because importers seeking insurance cover and shipping services from companies based in G7 and EU countries to transport Russian oil would need to observe the price ceiling. Member states eager to hit Moscow harder wanted a price level of as little as $30, but EU officials feared that this would prompt Russia to withdraw crude supplies. Brussels proposed a $60 limit yesterday and agreed to start talks on the ninth package of sanctions on Russia, a longstanding demand from hawkish member states, including Poland and the Baltic countries.


Oil and gas exports are likely to account for 42 per cent of Russia’s revenues this year, around Rbs11.7tn, the country’s finance ministry has said. The market price would be calculated with the help of the International Energy Agency.

www.sba.tax

Labels:

Comments

  1. Anonymous2 December 2022 at 12:01

    $60 a barrel sounds reasonable taking everything into account. The less money Russia gets, the better. $30 isn't a realistic amount no matter how much you want Russia to pay for what they did and are doing.

    ReplyDelete
  2. Jason2 December 2022 at 12:18

    Until the Russian people take Putin down, aggressions like the one against Ukraine won't stop no matter what these caps are.

    ReplyDelete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

EU debt reduction

  Brussels wants to give EU capitals extra time to curb their debts and create space for public investment as part of an overhaul of the EU’s deficit rules .  The European Commission would table a proposal at the end of the month to reform the Stability and Growth Pact ,  under which it would work out multi-year ,  country-specific plans with capitals for getting their debt burdens under control ,  EU officials said .  The proposals come as member states face mounting fiscal burdens as they spend hundreds of billions of euros sheltering businesses and households from the energy crisis .  Under the new blueprint ,  the commission would propose a four- or five-year plan to an EU member state to get its public debt burden on a credible ,  downward trajectory ,  officials said . The national fiscal plan would need to pass a debt sustainability analysis and be approved by the commission and EU council .  The new regime would ditch an EU ...
Post a Comment
Read more