Kyiv: Russia announced on Tuesday (December 27) that it would ban oil sales to countries that adhere to price caps imposed by the West this month. Funds for the war in Ukraine.
Under the price cap, which came into force on December 5, oil traders will be forced to buy one barrel of Russian offshore oil to maintain access to Western financing for key aspects of global shipping such as insurance. You must promise not to pay more than US$60 per person.
The cap is set at a price close to the current price of Russian oil, but well below the price at which Russia was able to sell oil for much of last year.
Russia is the world’s second-largest oil exporter after Saudi Arabia, and any disruption to Russian sales would have far-reaching implications for the world’s energy supply.
Vladimir Putin’s order, published on government portals and the Kremlin’s website, is a direct response to “acts by the United States and other countries and their participating international organizations that are unfriendly and inconsistent with international law.” presented as.
The Kremlin ban will suspend the sale of crude oil to countries participating in the price cap from 1 February to 1 July 2023. A separate ban on refined oil products such as gasoline and diesel will come into effect on a date set by the government. Putin has the power to reverse measures in special cases.
The Western price cap, unseen even during the Cold War between the West and the Soviet Union, effectively increased the Russian treasury and Moscow’s military spending in Ukraine without disrupting markets by blocking Russian supplies. It’s meant to undermine your efforts.
Russia’s fiscal deficit could exceed 2% of GDP projected for 2023, according to Finance Minister Anton Siluanov. This is because the oil price ceiling will put pressure on Russia’s export earnings. This is an additional financial hurdle for Russia, which spends heavily on military operations in Ukraine.
Some analysts say the cap is unlikely to have a direct impact on Moscow’s oil revenues, as Russian oil prices have already fallen close to that level. But that could limit Russia’s ability to profit from future price shocks.
Russian forces shelled and bombed towns and cities in eastern and southern Ukraine on Tuesday. After a number of dramatic Ukrainian achievements in the autumn, the war is entering a slow, wear-and-tear phase as harsh winter weather comes to the fore.
The heaviest fighting will be around the eastern city of Bakhmut, which Russia has been trying to storm for months at great cost to life, and further north of Svatove and Kreminna, where Ukraine is trying to breach Russia’s defensive lines. is the city of
https://www.channelnewsasia.com/world/russia-bans-oil-sales-countries-accept-price-cap-3170331 Russia bans oil sales to countries accepting price caps