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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.

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  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

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