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Oil War: Price Cap On Russian Oil Came Into Force

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Oil War: Price Cap On Russian Oil Came Into Force

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Oil War: Price Cap On Russian Oil Came Into Force

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On December 5, the price cap on Russian oil by Western countries came into force, and the European embargo on the supply of Russian crude oil by sea also begins to take effect. The price cap on Russian oil products will come into force on February 5.

After lengthy negotiations, the EU managed to agree on price cap for Russian oil at $ 60 per barrel. It was approved by the G7 countries, Australia and the European Union.

Disputes erupted over the position of the most Russophobic states. Warsaw insisted on setting the maximum price at $30 per barrel. In their turn, countries with a developed shipping industry, like Malta and Greece, did not agree to lower the limit below $70. About 50% of Russian oil exported by sea is transported by Greek shipowners.

The US Treasury explained that the price cap of $60 per barrel is high enough for Moscow to have an economic incentive to continue supplying fuel to world markets.

The price will be reviewed every two months in order to respond to possible “turbulence” in the oil market and assess if the measure is effective in its main goal, to reduce the financing of military operations in Ukraine.

European providers who intentionally violated the price cap will be prohibited from transportation of Russian raw materials for 90 days.

Thus, Russian suppliers will have to agree to sell oil at a price not higher than the established limit or turn to expensive services of companies outside the G7.

The EU’s decision has just come into force, but the first member country refused to take part in it. Hungary has achieved an exemption from the application of the price cap, which could become a precedent for other countries. The Hungarian Foreign Minister said that it is high time for Brussels to realize that such measures harm the European economy.

Before the sanctions were imposed, the EU, the US and the UK imported two-thirds of Russian oil and petroleum products.

In September, shipments to the EU accounted for only 24% of the total volume of sea shipments of Russian Ural oil. During the summer, India, China and Turkey increased exports of Russian crude oil by 1.2 million barrels per day, partially compensating for the reduction in supplies to Europe.

The price of $60 per barrel is acceptable for the Russian budget, as this level of oil prices is included in the draft budget law for 2023-2025. According to various experts, such a cap will not allow Russians to receive any excess income, but also does not pose any major threats to budget revenues.

In its turn, the Kremlin has previously claimed that Russia will not accept the price cap. Moscow refuses to supply energy to countries that make political decisions that contradict the terms of signed contracts.

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What I don’t understand from Russias war is tactics, the Russians don’t seem to make things difficult for Ukraine to resupply its troops in the Donbass.

Why the Dnipro crossings haven’t been taken out beats me?

Ukraine would certainly destroy them if Russia was trying to use them.

If you remove crossing points Ukraine will have to concentrate resources on the few routes available making for easier targets.

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HillBillySlim

Nobody can understand except they want Ukraine to keep pouring troops in until they run out of troops. It is a foolish strategy to me. If you can cut off the Ukrainian troops in the Donbass and win the war, do so. Do they want to be fighting in Ukraine for the next 100 years?

Ghost of Moscow

That’s what I have hear since February about every Sanction and Military Shipment NATO has done but it has always proven to hurt Russia and this will be no exception! We are at War with Russia and this will not be over until the Entire Russian Federation disappears in a Cloud of Smoke!

Igor

because after Ukr will be nuked, and IT WILL BE NUKED, those crossings will need to be used by russians

Ghost of Moscow

Russia Is Looking Like A Fool, Need I Say More!

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Yuri

will benefit Russia harm USA, EU

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JJ345

Okay so countries like India, Turkey and even the US going to buy cheap Russian oil/gas and sell it to the EU for profit/higher.

There is just no way for the EU to cut Russian gas/oil and get it from someone else, they could but in a few years (4-5 years).

Also, Russian said it again any country that try to put a price cap on Russian oil and gas not getting anything from Russia.

You don’t go to a shop and tell them how much you want a thing to be… OPEC+ countries are also supporting Russia, because if they (EU) want to do that with Russia they try to do it with OPEC+ countries.

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Last edited 2 years ago by JJ345
Igor

wanna bet russia will be ok with 60 $ price and bend over and sell it anyway ? how much u willing to bet? this is why the price was not set to 30 $ … they set the price to something that will be acceptable by the russians. If they really wanted to cut funds to Russia, the price cap would be 1 $ …it’s all a big scam and always about money

Last edited 2 years ago by Igor
Ramses

Maybe time to take it for free then. Why pay dictators for oil they haven’t invented any use of.

JJ345

Why do you pay for food, rent, anything? Go and take it for free buddy. You should start this “movement”.

The ones who sell/own a thing put a price over their products not the buyers, they can talk about it to reach a deal but the buyers can’t just say bla bla this is how much I want to pay. The world doesn’t work like that.

The EU price cap on Russia oil/gas means nothing, they have to buy it from other countries and it would not be cheap… This is the work of the US, they want the EU out as a world player and they achieving their goal.

Last edited 2 years ago by JJ345
Oy!

Not that simple mate. Strong USA means strong EU. Apart of France and Germany all other EU countries loves Yankees and Pax Americana. Simple fact. Russia miscalculated public feelings and unity of The West. Yes, USA panicked simply because russians infiltrated EU Parliament, the EU Commissions and a lot of European countries. Now this is sorted, russian oligarchs have no way back to Europe. Time for peaceful solution to all this mess started by putin – time for russia to actually work hard and invest in the future in your own country rather than act like aggressive parasites… hope one day democratic Russia would became great friend of countries like Poland to work together for better future…

Ghost of Moscow

Russia Is Looking Like A Fool! Need I Say More?

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Yuri

“the stupidity of murikans has long been a topic of hilarity in Europe”. Paul Fussell now the same in EU

Ghost of Moscow

The Stupidity of Russians in the Ukrainian War will long be a Topic of Hilarity across the the Entire World even in Russia itself for the Next Millennium!

Rodney Loder.

Transport is no big deal Russia has been obtaining a fleet of tankers for just such a purpose, price cap will be price hike.

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Ghost of Moscow

There will be Sanctions put on anyone who insures those Tankers, and without Insurance those Tankers will never leave Port!

Yuri

zero hedge reports that moron Danes pay most for electricity—the most expensive nations gas oil etc—mainly EU—expected that idiots prefer to freeze ruin their economies—-gestopo snafu and jens senility sad

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Ramses

Better to jerk off dictatorship Yuri instead of sovereignty and independence. We know you are weak and scream like an alcoholic woman when it gets tough and your vodka runs out. Then you come crawling begging for more from the store, and then you start to sing your sad songs as soon as you half the bottle. Or is it any other way?

Yuri

desperate nebraska moron—“amerikans are really 300 million used car salesmen..” Hunter Thompson…..you feminized ugly obese idiots are pathetic…”the banality of America–the radical absence of culture”. J Baudrilliard

jens holm

homosexual ukies are not Russian females—youpathetic americunt lgbt always confused

Christopher

Why is anyone taking the EU seriously, it’s just a club, nothing more?

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Yuri

massive agreement—Russia to sell gas oil to Pakistan—EU freeze pay 10 times more than civilized nations –can beg Mozambique perhaps😂😂😂—amerikan stay warm in gay bars

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JOSE ACERO

ESO ES MERCADO NEGRO POR INTERMEDIO DE TERCEROS Y EN ALTA MAR LOS PRECIOS OBVIO SON MUCHO MAS SATOS

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Tommy Jensen

The land of the free markets and free competition………….ehh wait.

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