EU states fail to agree on Russian oil price cap – Reuters

Must read

This is the second-biggest home price correction of the post-WWII era—it’s also a fairly mild correction

On one hand that 2.5% drop in U.S. home prices marks the second-biggest home price correction of the post–World War...

ChatGPT just created a new tool to catch students trying to cheat using ChatGPT

The maker of ChatGPT is trying to curb its reputation as a freewheeling cheating machine with a new tool that can help teachers detect...

The professor who wrote the book on digital surveillance says that Elon Musk’s Twitter takeover means our political stability, health and sanity come down...

Elon Musk has been in the news for years, but nothing compares to the splash he made in 2022 when he bought Twitter. A...

UPDATE: Acquittal of Pro-Life Activist Sparks Questions Regarding FACE Act Relevance

Last year the nation was rocked when the leaked Supreme Court decision to reverse Roe v. Wade hit...

Poland reportedly considered the currently proposed ceiling insufficiently punitive

EU governments have been unable to agree on a proposed price cap for seaborne Russian crude oil as of Monday, diplomats told Reuters. Poland and some Baltic states have reportedly demanded that the $65-70 figure proposed by the G7 countries be lower still, in order to hamper Russia’s ability to finance its military operation in Ukraine.

Warsaw insists the proposed cap will not have the desired effect on Moscow, pointing out that the country’s oil is currently trading somewhere between $52 and $63.50 per barrel. Along with Lithuania and Estonia, Poland has urged the bloc to set a ceiling of $30, allowing Moscow just $10 in per-barrel profits, assuming a production cost of $20 per barrel. The three countries also want to add a review mechanism so that the cap can be revised further down should the desire arise, and have called for a more coherent outline of the next sanctions package targeting Russia.

Poland’s intransigence is reportedly irritating other bloc members, with one EU diplomat complaining to Reuters that Warsaw was “completely uncompromising on the price without suggesting an acceptable alternative” and adding there was a “growing annoyance with the Polish position.”

While Malta, Cyprus, and Greece had previously argued the G7’s proposed cap was too low, diplomats explained they secured concessions in the legal text and were willing to move forward with the current figures. Hungary withdrew its own opposition last week, after securing an exemption from the measure.

The price cap is supposed to prevent shipping, insurance, and reinsurance companies from doing business with Russian oil producers or resellers who try to sell the commodity at a profitable margin. Most major shipping and insurance companies are based in G7 countries, meaning an agreement among those nations would severely hobble Moscow’s ability to sell its oil at prices higher than the capped rate. Russia has repeatedly said it would not sell oil to any country that goes along with the cap.

Last week, Russia warned countries that supported the G7 price cap that they would be cut off from future oil sales. Foreign Ministry spokeswoman Maria Zakharova cited the economic and political destabilization that would result from such a measure, arguing it would set a “dangerous precedent” as oil-producing nations discover that they could be similarly targeted by ideologically-motivated sanctions.

More articles

Latest article

This is the second-biggest home price correction of the post-WWII era—it’s also a fairly mild correction

On one hand that 2.5% drop in U.S. home prices marks the second-biggest home price correction of the post–World War...

ChatGPT just created a new tool to catch students trying to cheat using ChatGPT

The maker of ChatGPT is trying to curb its reputation as a freewheeling cheating machine with a new tool that can help teachers detect...

The professor who wrote the book on digital surveillance says that Elon Musk’s Twitter takeover means our political stability, health and sanity come down...

Elon Musk has been in the news for years, but nothing compares to the splash he made in 2022 when he bought Twitter. A...

UPDATE: Acquittal of Pro-Life Activist Sparks Questions Regarding FACE Act Relevance

Last year the nation was rocked when the leaked Supreme Court decision to reverse Roe v. Wade hit...

Maxine Waters Goes After Manchin and Sinema – Suggests They Don’t Care About Police Reform

Representative Maxine Waters took a shot at two Democrat Senators — Kyrsten Sinema and Joe Manchin — suggesting...