Brussels
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The Europeans finally agreed on Friday about the threshold beyond which the purchase of Russian oil transported by sea will be impossible. It is fixed at $60 per barrel, slightly below the current price of $65. If the price falls below the $60 threshold, a limit of 5% below the market price will be applied.
Specifically, shipowners, insurers and reinsurers will be prohibited from covering black gold cargoes when this purchase price is exceeded. And since 90% of Russian oil transported by sea is provided by groups created in the G7 and EU countries, this price ceiling should also be set at the global level, particularly in China and India.
It will also provide an opportunity to further ease the European embargo on Russian oil, which will come into effect this Monday. “This threshold will help stabilize global energy markets (…) and will directly benefit emerging economies and developing countries.” President of the European Commission Ursula von der Leyen assured on Twitter. Earlier, the White House also condemned the news “welcome”. “We continue to believe that a price cap will help limit the possibility of this happening (Vladimir) “Putin will use the oil market to continue funding the war machine that continues to kill innocent Ukrainians.”National Security Council spokesman John Kirby said.
The reluctance of Poland and the Baltic states
The G7 countries, as well as Australia, also agreed on Friday evening to set the price of Russian oil at the same price of $60 per barrel. Agreement in principle had already been reached, but it was suspended by a decision in Warsaw, which on Friday gave the green light to the price, allowing agreement first with the EU, then with the other G7 countries and Australia. The decision of the Europeans, which was eagerly awaited by Washington, still needs to be approved by a written procedure. Listening to the diplomat will be a formality. Poland and the Baltic countries have delayed the schedule. They opposed the commission’s proposed price of 65-70 dollars per barrel, considering it too high. This would allow Russia to continue to extract valuable profits from the black gold to finance the war.
A limit of 30 dollars per barrel was proposed by these countries. Baltner’s reluctance has been lifted in recent days, while Warsaw continues to resist. The promise of a new package of sanctions against Russia, the ninth. – allowed to win his consent.
Source: Le Figaro
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