January 29, 2023

The Kremlin rejects the ceiling on oil prices in the European Union: Europe will live without Russian oil

The Kremlin rejects the ceiling on oil prices in the European Union: Europe will live without Russian oil

On Saturday, the Kremlin rejected the European Union’s decision Plan to reduce Russian oil Prices are at $60 a barrel as it seeks to starve Moscow’s war chest and warns that “Europe will survive without Russian oil”.

“Moscow has already made it clear that it will not supply oil to those countries that support an anti-market price ceiling,” Mikhail Ulyanov, Russia’s permanent representative to international organizations in Vienna, said in a tweet on Saturday.

The agreement reached on Friday Reportedly, the EU will pave the way for additional measures by the G7 to target Russia as it continues its deadly war in Ukraine.

The European Union reaches an agreement on 60 US dollars for the price of a barrel of Russian oil

A general view shows the oil processing plant at the Yarakta oil field, owned by Irkutsk Oil Company (INK), in Irkutsk region, Russia, March 10, 2019. (Reuters/Vasily Fedosenko/Reuters Photo)

World leaders have sought to balance a plan that would hit the biggest dividend for the Kremlin while also allowing some Russian oil to remain on the market amid global concerns about soaring energy costs and inflation.

Price ceiling effectively prevent All Western companies are prohibited from insuring, financing or shipping Russian oil unless it sells for less than $60 a barrel – a condition likely to be felt in Russia given the price of more than $85 a barrel listed Saturday under Brent, the international benchmark for crude. . oil.

Kremlin spokesman Dmitry Peskov echoed Ulyanov’s comments, telling reporters on Saturday that they were “assessing the situation” and noting that “certain preparations” had already been made in the event of a cap on oil prices.

Peskov did not detail the precautionary measures taken by the Kremlin, but said, “We will inform you how the work will be organized once the assessment is over,” Tass reported.

Although every EU member was required to sign an agreement on Friday, not all countries felt the cap had hit Russia enough.

Kremlin spokesman Dmitry Peskov

MOSCOW, RUSSIA – DECEMBER 17: Kremlin spokesman Dmitry Peskov is seen moderating Russian President Vladimir Putin’s annual press conference in Moscow, Russia, on December 17, 2020. (Photo by Sefa Karacan/Anadolu Agency via Getty Images/Getty Images)

The US Treasury is calling for sanctions on G-7 oil to be phased in like the EU ban

Some countries such as Poland and the Baltic states have pushed for a stricter cap at $30 a barrel, and Estonian Prime Minister Kadja Kallas noted that every dollar removed from the cap reduces $2 billion in Russia’s war chest.

Despite some concern that the cap could lead to higher prices by draining the oil market, US Treasury Secretary Janet Yellen argued that the new cap would help lower the price of oil globally.

She said, “The price ceiling will encourage the flow of reduced Russian oil to global markets and is designed to help protect consumers and companies from global supply disruptions,” considering that it will help low- and middle-income countries bear the brunt of “rising energy prices.”

She added, “Whether these countries buy energy inside or outside the ceiling, the cap will enable them to bargain for deeper discounts on Russian oil.”

Russian President Vladimir Putin holds a meeting near Moscow

Russian President Vladimir Putin attends a meeting on economic issues via videoconference at the Novo-Ogaryovo residence outside Moscow, Russia, on Tuesday, June 7. (Mikhail Metzel, Sputnik, Kremlin pool photo via AP/Associated Press)

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The Russian Embassy in the United States called her remarks “arrogant” and claimed the move was “dangerous”, claiming that Russia will continue to search for buyers for its oil.

“Such steps will inevitably lead to increased uncertainty and higher costs for consumers of raw materials,” the embassy added.