All EU governments approve price cap on Russian oil

03/12/2022 21:58:00

Russia said it would continue to find buyers for its oil, despite what it described as a dangerous attempt by Western governments to introduce a price cap on its oil exports | Read more:

Russia said it would continue to find buyers for its oil, despite what it described as a dangerous attempt by Western governments to introduce a price cap on its oil exports | Read more:

All European Union governments have completed the written approval of a $60 a barrel price cap on Russian seaborne oil, the European Commission has announced, paving the way for its publication in the EU's Official Journal and entry into force on 5 December.

The measure, an idea of the Group of Seven nations, comes on top of the EU's embargo on imports of Russian seaborne crude that also kicks in on 5 December, and is meant to allow oil-related services to third countries only for those cargoes below the cap.Poland had delayed approving the adoption of the plan while it pushed for a lower price ceiling and tough new sanctions to punish Russia for its war against Ukraine and starve its military of funds.File photo Image: Alamy Stock Photo THE G7 AND EU have agreed a $60-per-barrel price cap on Russian oil in an attempt to deny the Kremlin of war resources, as President Vladimir Putin said more strikes on Ukrainian infrastructure were “inevitable”.TDs told one third of working-age Ukrainian refugees have jobs They needed to set the discounted price that other nations will pay by Monday, when an EU embargo on Russian oil shipped by sea and a ban on insurance for those supplies take effect.

"The G7 and all EU Member States have taken a decision that will hit Russia's revenues even harder and reduce its ability to wage war in Ukraine," EU Commission President Ursula von der Leyen said in a statement."It will also help us to stabilise global energy prices, benefiting countries across the world who are currently confronted with high oil prices," she said."We're working on the next package of sanctions, which will be painful and expensive for Russia," Mr Sados told reporters.The price cap will prohibit G7 companies dealing with the insurance, re-insurance or financing of oil trade or to handle Russian crude oil cargoes to third countries unless the oil was sold at or below the $60 a barrel price cap.“The G7 and Australia … reached consensus on a maximum price of $60 per barrel for seaborne Russian origin crude oil in line with” the European Union, the G7 said in a statement.Latest Ukraine stories From Monday, the EU itself will not be buying any Russian seaborne crude, which had made up 94% of all Russian crude imports by the 27-nation EU.The oil price cap will run alongside the EU's ban on imports of Russian oil, which comes into effect on Monday, and member states hope it will be the most damaging hit yet against the industry fuelling President Vladimir Putin's Russian war machine.The bloc will also stop any imports of Russian petroleum products from 5 February.The price cap on Russian seaborne crude oil should be lowered to $30 per barrel to hit Russia’s economy harder, a senior Ukrainian presidential aide said on Saturday.

A G7 price cap on the petroleum products will also be set at a later date, using exactly the same mechanism as for crude oil, the Commission said.He did not say which of the ideas might feature in the package that the European Commission is drawing up, but a discussion paper circulated last month called for Gazprombank, which facilitates payments for Russian energy exports, to be kicked off the SWIFT international payments system.Poland’s ambassador Andrzej Sados also said Brussels would take into account Polish and Baltic state suggestions for a “painful and expensive” ninth round of sanctions against Moscow.From Monday, EU shipping companies will only be allowed to carry Russian crude if it is sold below or at the G7 price cap, which will be reviewed every two months, starting from mid-January, to keep it at least 5% below the market price.Because the world's key shipping and insurance firms are based in G7 countries, the price cap would make it very difficult for Moscow to sell its oil at a higher price.Monday's oil embargo will prevent shipments of Russian crude by tanker vessel to the EU, which accounts for two-thirds of imports, the rest arriving by pipeline.Since the final details of the price cap are set so near to its implementation, cargoes of Russian crude loaded onto tankers before 5 December will be exempt from the restrictions for 45 days, or until 19 January.Putin said Russian strikes on Ukrainian infrastructure were “inevitable”, in his first conversation with German Chancellor Olaf Scholz since mid-September.If the price cap changes after the regular review mechanism, there will be a 90-day grace period to ensure that no vessel is caught at sea carrying oil bought at a price that is not accepted.This alone is greater than Russia's €60 billion defence budget before the war and dwarfs the financial and military aid spent by EU states to support Kyiv's pro-Western government.Europe is already mired in an energy crisis, with governments facing protests over the soaring cost of living, while developing nations are even more vulnerable to shifts in energy costs.

The price cap review is an EU-specific mechanism that will require unanimity among the 27 countries that make up the bloc for any changes to the price level.Once a change is agreed by the EU, it will be then discussed at the G7 level, which includes also the United States, Canada, Britain and Japan.China and India, for example, will still be able to import Russian oil, but under the proposed plan European insurers would be banned from covering tankers that carry oil trading at prices above the $60 ceiling.Advertisement During the hour-long call, Scholz “urged the Russian president to come as quickly as possible to a diplomatic solution including the withdrawal of Russian troops”, according to the German leader’s spokesman..

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Dangerous? Like invading a neighbouring country dangerous? Yep According to Russia everything the west does is dangerous. Russia will prevail, the vulnerable in Ireland will freeze, makes no sense to support Zellensky, but they keep doing it Poland is right !!! € 30/barrel forever !!!! No more money for Russia to sponsor terrorism !! Germans helping Russia in EU again to achive price €60/barrel. Help Poland to block terrorist Russia and their fellow Germans

Blame Russia for everything. Ukraine isn't corrupt. Their just evil. Most Russian oil is brought by Greek and other Western ships to India and China ...The sanctions mean ships will only be insured to carry the oil at $60 or less a barrel...Means Russia will not benefit from oil going up....Big win for India and China they get cheap Russian oil..

von der leyen was part of the german government that helped leave the EU relying on russian oil and gas, this woman should not be anywhere near a position of power I would not be surprised if Joe Biden becomes a customer. God forbid he would let American jobs drill for American oil.

EU agrees to impose price cap on Russian oilThe European Union will join the G7 powers in imposing a $60-per-barrel price cap on Russian oil, the Polish ambassador to the EU has said, three days ahead of an EU embargo on imports by sea. Just when you thought the unelected bureaucrats in the EU couldn't get any more ridiculous.... Ehhh… has Vlad agreed to this new price? Should be less.....

G7 and EU approve Russian oil price cap in attempt to deny Kremlin of war resourcesThe price cap is designed to make it harder to bypass the sanctions by selling beyond the EU. Noose is ever tighter and tighter

G7 joins EU on price cap on Russian oilUkraine calls for price per barrel to be lowered further to hit Russia’s economy harder China & India are buying Russian oil at market value. BRICS If I'm wrong let me know.

Zelenskyy criticises $60 price cap level on Russian oil as 'not serious'A $60 price cap set on Russian oil agreed by the EU, G7 and Australia is not 'serious' because it is 'quite comfortable' for Moscow, Ukrainian President Volodymyr Zelenskyy has said

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