Ukrainian President Volodymyr Zelenskyy has criticized the G7 countries, the European Union and Australia’s price cap for Russian oil. “It is not a serious decision to set such a ceiling on Russian prices,” because it is “comfortable” for Moscow, Zelenskyj said on Saturday. The market price of Russian Ural oil is currently around $65 per barrel, with a price cap of $60.
“Russia has already inflicted huge losses on all countries of the world by deliberately destabilizing the energy market,” Zelenskyy said in his evening video address. The decision for a price cap is therefore “a position of weakness”. It was “only a matter of time before heavier instruments had to be used,” Selenskyj added. “It is a pity that this time is lost.”
Price cap of $60 per barrel of oil
A price cap of $60 per barrel of oil would still allow Russia to generate about $100 billion a year, Zelensky said. “This money will also be used to further destabilize precisely those countries that are now trying to avoid drastic decisions.”
In order to “destroy” the economy of the Russian enemy more quickly, it is necessary to lower the price to $ 30, the head of the Ukrainian presidential bureau Andriy Yermak said on Saturday. At the same time, he welcomed the move.
Russia sees violation of free market laws
Russia sees this as a violation of free market laws. “We will not accept this limit,” President Vladimir Putin’s spokesman Dmitry Peskov said, according to the Tass agency. Russia is prepared for the price cap, will now quickly analyze the situation and then comment on concrete steps.
Kiev wants lower price for Russian oil
After long and difficult negotiations, the EU countries had previously agreed on a price cap for Russian oil, and the G7 and Australia followed suit. The states want to force Russia to sell oil below market price to buyers in other states in the future. The goal is to dry up the Kremlin’s war chest.
The agreement reached on Friday provides for an initial price cap of USD 60 per barrel. The price of about 57 euros per 159 liters would then be up to 9 euros below the most recent market price for crude oil from the Russian Urals. According to the plans, it will apply from Monday. The G7 includes the US, Canada, France, Germany, UK, Italy and Japan. Germany currently chairs the group.
Economist: ‘Russia will be hit hard’
According to energy economist Claudia Kemfert of the German Institute for Economic Research (DIW), the oil price ceiling would certainly hit Russia’s war chest. “It will hit Russia hard, the revenue will not be so abundant anymore,” she said on Deutschlandfunk on Saturday. One should not forget: “Russia has now made huge sums of money this year from high prices for fossil energy in general, including oil.” The only question is “whether it works as designed and how ultimately the world market reacts”.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
