Flailing in its effort to lower Russia’s oil profits, the US has put forward an idea for a price cap on Russian oil that is being considered by the G7. But the plan, first floated by Treasury Secretary Janet Yellen, doesn’t seem feasible as it requires cooperation from Russian President Vladimir Putin as well as China and India.
The G7 hasn’t offered any detail on the plan, but the idea would be to limit Russia’s profits without taking its oil off the global market and raising prices. But there’s virtually no chance that Putin would agree to sell Russian oil at a price set by the US. If the West tried to enforce the cap, it’s likely Putin would just stop selling oil to Europe since the EU has agreed on a phased ban of the commodity for most of its members that will take effect by the end of the year.
Despite the Western sanctions, Russia is profiting more from oil now than it did before the war, thanks to an increase in prices and China and India significantly stepping up their purchases. China and India have already been buying Russian oil at a discount and are not likely to agree with any Western plans since they have ignored US pressure to curb their imports from Russia up to this point.
In the unlikely event that Russia, China, and India agree to the price cap, it would likely raise global prices anyway. An artificially low price would mean more demand than what Russia could produce, which would lead to shortages of Russian crude.
Despite how unfeasible the plan is, the G7 sounds like it’s seriously considering it. Biden and the other G7 leaders said in a joint communiqué on Tuesday that they are considering a “range of approaches” on Russian oil, including banning its shipment “unless the oil is purchased at or below a price to be agreed in consultation with international partners.”
15 thoughts on “G7 Mulls Russian Oil Price Cap as Sanctions Fail To Curb Russia’s Profits”
Wait… This was Yellen’s idea?!
Talk about your typical box of rocks,
The Russian oil Europe is now denying themselves to divert to India/China is better oil. The terminology is “sweeter” & it is “Urals” oil. The oil Biden is trying to buy from Venezuela now is “heavier” and has higher sulphur content. So, now the good willed Greens/Environmentalist are forced to polute. You have made a 2014 coup d’etat/revolution paramount.
the US exports slightly more oil every day than it imports so the US literally has no need for importing any more oil from Vz or saudi
These NATO imbeciles can’t mentally conceive of the fact that there is a limit to their power. They are leading their countries into a cascade of disasters.
Following the U.S. right off the cliff.
Marxism like this sounds great to me, but perhaps it should be over a commodity that is not ending human survivability on earth the more we use it..? Such as demanding China sell us solar panels and windmills for less than they’re worth.
Looks like the classic mafia ‘either/or business arrangement’; but, the ‘or’ part is not so apparent.
Mental midgets crashing the world economy
In my best John McEnroe imitation: YOU CAN”T BE SERIOUS!!!!
the US has put forward an idea for a price cap on Russian oil that is being considered by the G7
if i was russia i would raise the price of my oil and demand payment in rubles
Great video that depicts the Root Cause of the Russian invasion of Ukraine.
Follow the money.
Nothing to do with BS Neo Nazis nor NATO and surely nothing to do with the Russians living Donbas. It’s all about the Global GAS MONOPOLY Putin wants to achieve.
If you care, watch this detailed objective presentation.
Pretend world Part 2. Part 1. Is screwing bond hold holders of Russian debt by not processing the payments* at this time to pretend Russia is in or attempting default.
*In the outright propaganda of the Associated Press it says “you are not allowed to invade Ukraine.”. It doesn’t say Russia doesn’t have money, it says we are freezing accounts & not allowing other payments.
Sanctions backfired, badly, to an extreme. Blowback is the only thing they did.
So now the US tries again.
Biden fired the guy who ran the sanctions, just as he left for this European trip. His new team has a new approach.
They imagine they can induce Putin to supply the world with oil, while giving up his income from that oil.
“Isn’t it pretty to think so?” This is the final line of Hemingway’s The Sun Also Rises. It was condemnation of couple of fools.
Shows how out in la-la-land the West’s leaders are. This is utterly unenforceable and will rebound against the West, just like every other sanction so far.
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