EU will announce the cost of buying Russian oil today
2022.11.25 10:41
EU will announce the cost of buying Russian oil today
Budrigannews.com – According to EU diplomats who spoke with Reuters, government representatives from the European Union will resume discussions on the amount of a price cap on Russian seaborne oil on Friday evening.
On Thursday, European Association states stayed split over the level at which to cover Russian oil costs to check Moscow’s capacity to pay for its conflict in Ukraine without causing a worldwide oil supply shock.On December 5, the cap is scheduled to take effect.
The cap’s purpose is to prevent shipping, insurance, and reinsurance companies from handling Russian crude cargoes anywhere in the world unless it is sold for less than the Group of Seven nations’ and its allies’ established price.
The price cap would make it very difficult for Moscow to sell its oil at a higher price because the G7 countries house the world’s most important shipping and insurance companies. Oil is the G7’s biggest export and accounts for 10% of the world’s supply.
Greece, Cyprus, and Malta lobbied for a higher cap or some form of compensation for the anticipated loss of business to their large shipping sectors, while Poland, Estonia, and Lithuania were pushing for a cap that was significantly lower than the $65-70 per barrel proposal made by the G7.
The EU diplomats, who requested anonymity, stated that it was unclear how close either side was to reaching an agreement.
“The most recent is that Poland, Estonia and Lithuania are attempting to outshine each other on their durability on the cost cap,” one of the representatives near the discussions said, adding that Poland needed to connect consent to the value cap to another bundle of approvals against Russia.
“On the other hand, Malta, Greece, and Cyprus are in it for the money, in any way they can get it—through a higher cap or compensation, for example.According to the diplomat, “positions are still very far apart, and the United States is nowhere to be seen to bring the two sides together.”
