Talks to establish a cap on The price of Russian The United States has been working long and hard to get oil. and Pro-Ukraine allies were faced with a setback Wednesday when a meeting of senior European Union diplomats was held over the exact price and Other details can be negotiated separately.
The plan is near completion and must be in place prior to an E.U. embargo on Russian Oil imports begin to kick in on Dec. 5.
E.U. All 27 member countries’ diplomats met Wednesday evening to finalize the details.
Because of their differing views, they were unable to come to an agreement. on It would be difficult to determine the exact price. and Some countries asked for further changes to the policy. It was unclear when they would meet again to resume negotiations.
At stake is a complicated, fraught effort among Ukraine’s allies to limit the Kremlin’s revenues from oil exports while averting a shortage of the fuel, which would force prices up and This will increase the cost of living around the world.
The E.U. The E.U. and $70 per barrel and Approve soft-touch enforcement techniques
The benchmark for the price Russian Oil, also known as the Urals mix, was traded between $60 and $60. and The price of a barrel was $70 in the year preceding the pandemic. It rose as high as $100 per barrel shortly after Russia’s invasion of Ukraine in February, but over the past three months has settled between $65 and 75c per barrel It has traded at the lower part of that range this week.
A Treasury official claimed that on Tuesday, the coalition was expected announce the price in coming days. and The United States indicated that it wasn’t trying to influence European Union price negotiations. The official stated that the price of the oil is likely to fluctuate over time. on Regular reviews are done to keep up with changing market conditions.
Despite the delay in determining a price G7 Several countries have tried to prepare the participants in the energy market for the implementation of the price cap. It will also place the burden of implementation. and Policing the cap on Businesses that sell the oil: Global Shipping and Most insurance companies are located in Europe. Most tankers transporting Russian oil are Greek-owned, according to maritime data; London is home to the world’s biggest maritime insurance companies.
The Treasury Department issued new guidance Tuesday explaining this. Russian Oil that was sold below the cap, but was later resold “substantially transformed” The sanctions would not apply to products that are made or refined in Russia. It also provides a “safe harbor” Provision that protects insurance companies and Other financial service providers are exempted from liability if sanctions are violated on Falsified information regarding the oil price in shipping transactions
Some E.U. Diplomats from the E.U., particularly from Poland and Other staunch Ukraine allies said that the proposed price range by the G7 It was too high and The cap should be much lower to prevent hurt. Russian Revenues, many E.U. diplomats involved or briefed directly on These were the results of the talks.
Greece and Cyprus and Malta, which have serious stakes in the policy because of their large maritime industries, asked for an even higher cap — which would actually have put the price above current trading levels — and Some even sought to be compensated for the loss of income from their maritime businesses.
France and Germany and Italy and the three E.U. The Group of 7 industrialized nations are the driving force behind the Nation. Russian The price range proposed is supported by the oil price cap and The softer enforcement mechanisms were advocated by the U.S. as necessary to avoid a supply crisis.
Russia stated that it would not adhere to a formal price limit; setting it at the current market price would allow it to save face and Exports will continue.
Embargo on the European Union on Russian The oil that kicks in on Dec. 5 also contains a ban on European services to ship and finance, or insure Russian oil shipments to destinations outside the bloc, a measure that would disable the infrastructure that moves Russia’s oil to buyers around the world.
These European shipping companies would be allowed to transport instead of being subject to a price cap. Russian Only shipments that comply with the limit can be crude oil outside of the bloc They would, in other words, be responsible for ensuring that the shipment conforms to the cap. Russian Oil they were transporting or insuring must have been sold at the capped prices or less. If they did not, they will be legally liable for violating sanctions.