The $60 cap on the price of oil delivered by Russia comes into force starting with today
Russian oil that comes by sea has a capped price of $60 a barrel as of today. The measure taken by the European Union could have the effect of ending Russian exports. Analysts do not expect, in a first phase, an increase in fuel prices, as refineries have stockpiled. In addition, on the international market, oil prices are falling. Ukrainian President Volodymyr Zelensky again pointed out that Ukrainians will have a tough winter, but added that it should be seen as a time frame that brings them closer to victory.
The price ceiling aims to put economic pressure on Russia and further reduce its ability to finance a conflict that has killed large numbers of civilians and fighters, driven millions of Ukrainians from their homes and crippled the world economy for over nine months. “Before the Russian invasion of Ukraine, the EU was getting about a quarter of all its oil from Russia, so eliminating these imports is a big step for Europe. The EU was also the largest export market for Russia and has remained so. So this also has a major impact on trade flows of Russia's exports," said Lauri Myllyvirta, Energy Research Centre. Russian crude already sold for around $60 a barrel, a significant discount from the international benchmark Brent, which closed at $85.42 a barrel on Friday. "Initially, the EU decided to ban its companies from trading Russian oil anywhere in the world and 90% of Russian oil shipments are provided by European companies. So that would have had a huge impact on Russia's ability to sell oil around the world. But the United States has instead pushed for a price cap that would limit the price at which these companies can ship oil around the world," said Louis Wilson, principal agent, Global Wintness. President Volodymyr Zelenskiy appealed to the perseverance and resilience of the Ukrainian people to face the cold season. "The winter will be hard. But still, this should be perceived as a test, which will bring us closer to what is most important - victory. The enemy hopes to use winter against us. We must do everything to survive this winter, however hard it may be. Enduring this winter means defending everything. All Ukraine must become one great invincible point, work every day and every night. The state, the people - all of us, Ukrainians, are all together," the leader from Kyiv noted. Ukraine entered the winter with almost 40% of the energy structure destroyed by the bombings. Under these conditions, interruptions in the supply of electricity vary between 4 and 12 hours. Kiev is facing a hard and dark winter after Russia hit its energy infrastructure. Mayor Vitali Kliciko told people to stock up in case of another massive power outage.
