Ukraine says nuclear power plants are back online: live updates

attributed to him…News agency

European Union diplomats on Thursday could not agree on the final details of a policy to help limit Russia’s oil revenues, after a setback the day before in efforts led by the United States and Ukraine’s allies to curb the flow of money to finance Russia’s invasion of Ukraine. .

Officials could not agree on the highest price traders, shippers and other companies in the supply chain could pay for Russian oil sold outside the bloc. This policy must be in place before the EU ban on Russian oil imports kicks in on December 5th.

The ban only applies to the 27-nation bloc. So, in order to limit financial gains for Russia, the group wants to limit how much buyers outside the region pay for Russian oil. This ore can only be sold outside of Europe and must be lower than the agreed price. Russia has repeatedly said it will ignore the policy, and analysts say it will be difficult to implement.

Russian President Vladimir Putin said on Thursday that plans to cap Russian oil prices “contradict market principles and are likely to lead to serious consequences for the global energy market,” along with Iraq’s prime minister.

The United States and Europe imposed sanctions on Russia from the start of the war, isolating the country from financial markets, and making oil, its biggest export, essential to financing the war in Ukraine. At stake are complex and fraught efforts among Ukraine’s allies to reduce the Kremlin’s revenue from oil exports while avoiding fuel shortages, which could drive up prices and exacerbate a cost-of-living crisis around the world.

EU ambassadors were told to set a price of $65 to $70 per barrel, and to be flexible about enforcing the limit.

The price of Russian oil, known as Urals Blend, has traded from $60 to $100 per barrel in the past three years. In the past three months, the price has traded from $65 to $75 per barrel.

Despite the delay in setting the price, the G7 countries are trying to prepare energy market participants for how the price cap will work. It would put the burden of implementing and monitoring the policy on the companies that help sell the oil. These global shipping and insurance companies are mostly located in Europe. According to marine data, most of the tankers transporting Russian oil are owned by the Greeks. And London is home to the largest marine insurers in the world.

Some EU diplomats, especially from Poland and Ukraine’s other powerful allies, said the price range proposed by the Group of Seven industrialized nations was too high and that the cap would have to be capped too often in order to hurt Russian revenue, according to several EU diplomats directly involved in or Inform him of the conversations. They asked not to be named because they are not authorized to speak publicly.

Greece, Cyprus and Malta, which have serious interests in politics due to their large maritime industries, have asked for a higher cap. That would have put the price above current trading levels, relieving pressure on companies based there. Some have even claimed compensation for the potential loss of income for their offshore business.

France, Germany and Italy, the three EU members of the Group of Seven industrialized nations that drive the Russian oil price cap, have argued in favor of an offered price band and softer enforcement mechanisms, and defended the US position that those were necessary to avoid a supply crisis.

The EU embargo on Russian oil that began on December 5th also includes a ban on European services to ship, finance or insure shipments of Russian oil to destinations outside the bloc, a measure that would disrupt the infrastructure that gets Russian oil to buyers. around it. the scientist.

However, the price cap would allow European shipping providers to ignore the ban as long as they ship Russian crude out of the bloc at a price below the cap. Enforcement of this will be left to companies. Otherwise, they will be held legally responsible for violating the penalties.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *