Tuesday, February 7, 2023

US Convinces That Cap On Russian Crude Will Limit Putin’s Income

Washington, Dec 2 The United States government celebrated this Friday that the European Union, the G7 and Australia’s decision to impose a cap of $60 on a barrel of Russian crude transported by sea could hurt Russian President Vladimir Putin’s income and finances. will limit

“Today’s action will help limit Putin’s finances and the revenues he is using to finance his brutal invasion of Ukraine,” US Treasury Secretary Janet Yellen said in a statement.

Yellen said that in a situation where the Russian economy is already shrinking, a cap on the price of crude would mean an immediate reduction in Putin’s most important source of income.

The G7 club of industrialized nations and Australia on Friday agreed to cap Russian crude oil shipments by sea at $60 a barrel, in line with a decision by European Union (EU) countries.

With the move, the United States, Canada, Japan, the United Kingdom, Italy, France and Germany – who are the current presidents – intend to prevent Russia “from benefiting from its war of aggression against Ukraine”, they have signed a announced in the statement.

Furthermore, the measure, which will come into force on or “soon after” December 5, aims to “support stability in global energy markets and mitigate the economic effects of the Russian war, particularly for low- and middle-income countries”. “

To implement the decision, members of the Club of Seven will block their shipping companies from providing services allowing global transportation of Russian crude and its derivatives unless they are purchased at or below a specified price.

“We reaffirm our intention to eliminate crude oil and oil products of Russian origin from our domestic markets. This commitment is not modified by the implementation of the cap,” the statement stressed.

In contrast, the measure aims to allow stable energy supplies to third countries while limiting Russia’s revenues, the G7 said.

At the same time, the economic interests of these third countries are not harmed, as capping imports “will help limit energy prices and limit Russia’s ability to benefit from the extraordinary profits derived from the war”. .

While this limit will be effective from next Monday, December 5, a temporary exception will be included to allow transactions that affect crude oil that has already been loaded on the vessel concerned before that date.

The Club of Seven serves to coordinate the implementation of the cap as far as possible in order to reduce the resulting burden on companies.

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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