G7 will review price ceiling for Russian oil in March

The G7 countries intend to revise the price ceiling for oil from Russia in March. This was announced by the Assistant Secretary of the U.S. Treasury for Combating Terrorist Financing and Financial Crimes, Elizabeth Rosenberg.

"All I can say is that the G7 plans to reassess the ceiling in March," Ms. Rosenberg said at the CERAWeek international energy conference in Houston.

The introduction of the oil price ceiling, combined with the embargo on trade in oil and oil products, has proved to be a very effective measure, despite the skepticism of many experts. The leading countries occupy such a significant place in the market and consume so many resources that they are able to dictate prices from the consumer side, not the producer side.

Thus, the introduction of a ceiling can involve even those countries that for some reason are not ready for a physical ban or restriction on trade. If prices are capped instead, these countries will benefit from joining the pressure on Russia, driving the price even lower.

Self-interest is the best motivator of economic relations. Thus, the world's leading countries have managed to get even those countries that continue to buy Russian energy to join in the reduction of its foreign exchange earnings.

The countries will introduce future measures guided by such logic.

The EU plans to enter the global natural gas market as a cartel of buyers, seeking to reduce energy prices.

Joint purchases of gas by the EU are estimated at 24 billion m3 over the next 3 years, and the first contracts are scheduled to be signed in June.

The initiative was put forward to limit the spike in energy prices caused by the reduction in supplies from Russia after the start of Russia's full-scale war against Ukraine.

Vice President of the European Commission Maroš Šefčovič believes that this initiative will increase competition, attract new suppliers and lead to lower energy prices.

Meanwhile, the sanctions already imposed are dragging the Russian economy down.

1. The energy company Hoyer has announced the successful delivery of the first shipment of diesel fuel from the UAE to Germany.

Germany is scrupulously eliminating its dependence on Russia in all possible areas.

2. Two Canadian companies have been sanctioned by the US because of their cooperation with Russia.

These are 2 electronics importers Cpunto Inc and Electronic Network Inc from Montreal.

“Recently, the US Department of Commerce imposed export restrictions on nearly 90 companies from Russia and third countries and banned them from purchasing goods such as semiconductors. These examples will teach businesspeople from around the world: there is no point in cheating; the civilized world is very serious”

Recently, the US Department of Commerce imposed export restrictions on nearly 90 companies from Russia and third countries and banned them from purchasing goods such as semiconductors.

These examples will teach businesspeople from around the world: there is no point in cheating; the civilized world is very serious.

3. Officials from the US State Department and the European Commission met with representatives of the diamond business to discuss ways to deprive Russia of revenues from gem exports.

"Russia continues to earn billions of dollars from the diamond trade, and the conversation focused on the most effective ways to interrupt this revenue stream," the US State Department said after the meeting.

Officials called on representatives of the gemstone industry to participate "in future import events related to Russia, including diamonds."

4. Russia's sovereign wealth fund continues to shrink every month.

In February 2023, the Fund's liquid assets decreased by USD 5.5 billion and amounted to USD 85.5 billion as of March 1.

5. 1.1 million people moved from Russia to other countries for permanent residence.

In particular, 15,000 millionaires left, which is 20% of the total.

Losses in uninvested investments were estimated at USD 251 billion last year; this year, due to the rapid depletion of domestic resources, Russia will lose at least USD 124 billion.

And it will continue.

Source

About the author. Rostyslav Pavlenko is a Ukrainian politician, political scientist, political strategist, and lecturer. Member of the Ukrainian Parliament of the IX convocation.

The editorial board does not always share the opinions expressed by the blog authors.