“Today’s move will help limit Putin’s finances and the revenue he uses to fund his brutal invasion of Ukraine,” the US Treasury Secretary said in a statement. said.United States), Janet Yellen.
Yellen said that in a situation where the Russian economy is already shrinking, hedging the price of crude oil would mean an immediate reduction in Putin’s main source of income.
The G7 group of industrialized countries and Australia agreed on Friday on a limit of US$60 per barrel on Russian crude oil transported by sea, in line with the decision of European Union (EU) countries.
The US, Canada, Japan, England, Italy, France and Germany, which currently holds the rotating presidency, said they wanted to prevent Russia from “profiting from the war of aggression against Ukraine”.
The measure, which takes effect on Dec. 5 or “shortly thereafter,” also aims to “support stability in global energy markets and minimize the economic impact of Russia’s aggressive war, especially for low- and middle-income countries.” “.
The EU and the G7 impose a price cap on Russian crude oil to cut off sources of war in Ukraine
To enforce the decision, Club of Seven members will prohibit shipping companies from providing services that enable global transportation of Russian crude oil and derivatives unless purchased at or below the advertised price.
“We reiterate our intention to remove Russian sourced crude oil and oil products from our domestic markets. This obligation does not change with the application of the upper limit.
On the contrary, according to the G7, the measure is intended to ensure a stable energy supply to third countries while limiting Russia’s revenues.
This would not harm the economic interests of third countries, as imports below the cap would “help control energy prices and limit Russia’s ability to continue to enjoy extraordinary war profits”.
While the cap will go into effect on Monday, December 5, a temporary exception will be added to allow for transactions involving crude oil loaded onto that ship before that date.
The Yediler club is also committed to coordinating the implementation of the cap as much as possible in order to minimize the resulting burden on companies.
Source: Ultimahora
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Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
