It is not a serious decision to set such a limit for Russian prices, which is quite comfortable for the budget of the terrorist state
he said, according to the services of the presidency.
The price of a barrel of Russian oil (crude from the Urals) is currently fluctuating around 65 dollars, barely above the European ceiling, implying a limited impact in the short term.
On Saturday, kyiv first predicted to Russia that its economy would be destroyed by the cap on the price of its oil, on which the European Union, the G7 and Australia agreed, in order to limit the means of Moscow to finance the conflict in Ukraine.
We always achieve our goal and Russia’s economy will be destroyed, and she will pay and be responsible for all her crimes
said on Telegram the chief of staff of the Ukrainian presidency, Andriï Yermak.
Russia subsequently declared that it will not accept
capping the price of its oil after the European Union, the G7 and Australia have agreed the day before such a mechanism, which could limit the means of Moscow to finance its offensive in Ukraine.
We will not accept this ceiling
, Russian presidential spokesman Dmitry Peskov told reporters on Saturday, quoted by Russian agencies. However, he claimed that Moscow had prepare
upstream for such a ceiling
without giving further details.
Limit sales
US Treasury Secretary Janet Yellen welcomed the $60 cap announcement, which is the culmination of months of effort by our coalition
. The agreement was made possible by the consensus reached on Friday by the Twenty-Seven of the European Union.
The finance ministers of the G7 countries had agreed in early September on this tool, designed to deprive Russia of financial means.
The mechanism will come into effect on Monday or very soon after
, specify the G7 and Australia. It is indeed Monday that the embargo of theUE on Russian oil transported by sea.
Thus, only oil sold by Russia at a price equal to or less than 60 dollars can continue to be delivered. Beyond this ceiling, it will be prohibited for companies to provide services allowing maritime transport (freight, insurance, etc.).
Currently, the G7 countries provide insurance benefits for 90% of global cargoes and theUE is a major player in sea freight – hence a credible deterrent, but also a risk of losing markets to competitors.
Russia, the world’s second largest exporter of crude, had for its part warned that it would no longer deliver oil to countries that would adopt this cap.
Without this ceiling, it would be easy for him to find new buyers at the market price.
We will be ready to review and adjust the maximum price if necessary
, assure G7 and Australia in their press release. And a ceiling should also be found for Russian petroleum products from February 5, 2023.
Effects on the global economy
The European embargo comes several months after the one already decided by the United States and Canada. But Westerners also have to deal with the interests of powerful British insurers or Greek shipowners.
UE stands united and stands with Ukraine”,”text”:”EU stands united and stands with Ukraine””>L’UE stand united and stand in solidarity with Ukraine
welcomed the Czech Presidency of the Council of theUE in a tweet.
A Ukrainian soldier inspects a damaged Russian tank in the recently recaptured village of Chornobaivka near Kherson.
Photo : Associated Press / Efrem Lukatsky
Russia earned more than $95 billion from its oil sales toUE since the start of the war in Ukraine, while its annual military budget amounts to around 85 billion, recalls Phuc-Vinh Nguyen, an expert in energy issues at the Jacques-Delors Institute.
The instrument proposed by Brussels plans to add a limit set at 5% below the market price, in the event that Russian oil falls below 60 dollars.
In fact, some experts fear a destabilization of the world market and wonder about the reaction of the producing countries of OPEC, which meet Sunday in Vienna.
This cap will help stabilize global energy markets […] and will directly benefit emerging economies and developing countries
since Russian oil can be delivered to them at prices below the ceiling, on the contrary assured on Twitter the President of the European Commission, Ursula von der Leyen.
Starting Monday, the embargo of theUE on Russian oil shipped by sea will cut two-thirds of its crude purchases from Russia.
Germany and Poland having also decided to stop their deliveries via an oil pipeline by the end of the year, total Russian imports will be affected by more than 90%, say the Europeans.
In contrast, an oil price ceiling has never been seen. We are in the unknown
Phuc-Vinh Nguyen is alarmed, stressing that the reaction of OPEC countries or big buyers like India and China will be crucial.
The only certainty, according to him: a cap, even at a high price, will send a strong political signal
to Vladimir Putin, because, once in place, this mechanism can be tightened.
Ukrainians fill water bottles near the Dnipro River, after the Russians’ military withdrawal from Kherson.
Photo : Archyde.com / Murad Sezer
In Ukraine, the population must to own
dealing with power outages
In addition, the Ukrainian authorities on Saturday called on the population to to own
face the power cuts that now punctuate their daily lives following Russian strikes in recent weeks that have largely damaged the national electricity grid.
Starting Monday, I will demand that Oblenergo [un opérateur] review the region’s schedules. There will most likely be four hour stops
said on Telegram the governor of the Mykolaiv region, Vitaliï Kim.
He described a rising consumption
of electricity, which according to him must require longer interruptions in order to relieve the regional electricity network. One must keep
he launched to the inhabitants of his region.
The city of Hostomel, kyiv region, Ukraine
Photo: Archyde.com / Valentyn Ogirenko
Russia has massively bombed Ukrainian energy facilities since October, causing severe damage and leading to power cuts that affect millions of Ukrainians, plunged into darkness and cold every day.
On the military ground, the fighting is tough
in the east of the country, because the Russians had time to prepare
to the attacks in kyiv, the governor of the Lugansk region, Sergei Gaïdaï, told Ukrainian television.
The Ukrainian Armed Forces are slowly pushing through the [défense] russe en direction de Svatové-Kreminna
he noted, however, without giving further details.
Targeted electricity networks
According to a morning report from the Ukrainian army, the situation is difficile
near Bakhmout, in the Donetsk region, which the Russians have been trying to conquer since the summer without succeeding at this stage.
The battle around this city took on all the more symbolic importance for Russian officials as its conquest would come after a series of humiliating defeats, with the retreats from Kharkiv (north-east) in September and from Kherson in November.
The same difficulties
affect kyiv troops in the Kherson region (south), from where the Russian army partly withdrew in November, saying it wanted to consolidate its positions.
The Russians bombarded Kherson [et] damaged electrical networks
can we read in this report published on Saturday morning.