The economic war between the West and Moscow ratcheted up significantly on Friday when the G7 announced price caps on Russian oil exports. Moscow responded by extending the closure of a critical pipeline bringing gas to Europe. The White House has vowed to destroy the Russian economy, and the Kremlin has responded by further driving up the price of European energy.
For months, US Treasury Secretary Janet Yellen has pushed the rest of the world to adopt "price caps" on Russian energy exports. The plan calls for placing a maximum price a company can pay Russia for their oil. Analysts at JP Morgan Chase have warned the price caps could lead to oil prices at over $350 per barrel.
The G7 plan announced Friday did not state the maximum price a Western company could pay Russia for its oil. Whatever the price, it is expected to take effect in early December. The G7 did not explain how it planned to get Moscow to agree to sell its oil at reduced prices. In the past, the Kremlin threatened to cut oil exports to any country that adopted Western price restrictions.
Shortly after the G7 rolled out the price caps, the Kremlin issued a statement saying the Nord Stream 1 would close indefinitely. The pipeline brings natural gas from northeastern Russia into Germany. Russia claimed the shutdown was caused by a leak. Though, German authorities say Nord Stream is operational.
The G7 and Russia took the steps amid a growing economic war. In response to Russian President Vladimir Putin ordering his forces to invade Ukraine, America and its allies issued sweeping sanctions that were intended to destroy the Russian economy. However, the sanctions regime has thus far backfired on the West, with rising energy costs causing suffering in Europe and Moscow maintaining much of its economic strength.
When Russia first halted pumping gas through the pipeline earlier this week, the White House claimed the Kremlin was "weaponizing energy." European Commission chief Ursula von der Leyen said imposing the price restrictions will counter Russian "manipulations."
It’s unclear if the price caps will have an impact on the Russian economy. Since the invasion, the West has scaled back its imports of Russian energy, but Moscow has found other buyers in China, India and Turkey. Meanwhile, Americans and Europeans continue struggling with rampant inflation.
Kyle Anzalone is the opinion editor of Antiwar.com, news editor of the Libertarian Institute, and co-host of Conflicts of Interest.
Blow me over. No oil – No gas.
Lets see how the EU Nations cop that.
Both of the beligerents care SO much about Europe, they’re curious how much suffering Europeans can endure and are doing everything possible to find out. The US and Russia are merely burning through the next generation’s wealth and potential, no big whoop.
Eventually, Europe will recognize how much benefit it has generated for BRICS.
“The G7 did not explain how it planned to get Moscow to agree to sell its oil at reduced prices.”
They’ll cross that bridge when this “Analysts at JP Morgan Chase have warned the price caps could lead to oil prices at over $350 per barrel” happens.
Cut off the oil exports to these hostile countries also.
Short term, EU will feel the burn and Russia will enjoy it. Long term, EU will move on to other suppliers and Russia’s natural gas export main revenue will seize and its economy will collapse. 🤷🏽♂️
Long term it will just have other customers. It is only in the short term it takes to build delivery systems that is a problem.
Russia and China will make sure the $$$ will collapse first. The USA has no friends only coerced vassals they call allies.
Russians are very advanced with computer technology, as are Chinese and Iranians. Five-eyes and Nato are desperately diverting their populations with greater and more frequent doses of fear and war propaganda while slipping into totalitarianism barely veiled with the illusion of representative democracy. Much of the rest of the world can see quite clearly through this tired act.
The question before humanity is how to live well in balance with Earth. Very few believe either Five-eyes or Nato have the interest or ability to effectively intervene in impending human extinction via climate collapse and poisonous environmental pollution.
Chinese people have collectively advanced to verging on a centuries-long gentle decline in population. Iranians reached that point once but were diverted by western bellicosity. Russia has proven it can be a partner in colonizing the moon without a huge and growing population. These three countries acting as the BRICS, plus Argentina and Mexico, have the technical ability to harness the distributed intelligence of humanity in a new form of advanced real democracy and find a path away from capitalist war monger hell to a much more fun and healthy way of life.
Why in the world Europe is going along with the senile histrionics of Biden and his lickspittles is beyond me. I am disgusted by my own country; this war could have been ended back in April if not for the psychopathic “policy” of a 79 year old imbecile, who can’t die soon enough for me. I hope he’s buried in Arlington so I can visit and piss on his grave.
Could you take a photo of that? I’d pay to see that!
They are all locked into the NATO war machine they feel without the Americans holding their hand they are going to be attacked by Russia lol.
They are corrupt, coerced, or blackmailed characterless shysters. Traitors of their nations and the people. They should hang from the tallest trees, the sooner the better. They are criminals.
LOVE IT, Javy!
The war could have been avoided. To destroy the European economy is intentional. The corporate elite in the USA suffers from delusion of grandeur, underestimating Russia and its leadership and totally confident that with US/NATO economical and military power they can rule the world. Sanctions and bombs will take care of it, they know.
Such cooperating insanity by the total USA/NATO leadership had to be organized, it just can’t be so disciplined without it.
Not by accident can they have imbecile Biden, Boris, Scholz, Macron, and their cabinet members like Blinken, Sullivan, Nuland, Truzz, Baerbock, Habeck, von der Leyen, and the cocaine clown in Kiev and the leaders of Sweden and Finland and the 3 Baltic states leading nations. The corporate elite picks the candidates we may vote for. They pick and pay people who will serve their interests. This is madness.
Doesn’t matter how many stacks of dollar bill Europe is standing on, come winter they will soon ran out
Yup, we’ll see it when the Black Forest is clear-cut for firewood 😉
Doesn’t matter how many stacks of dollar bill Europe is standing on, come winter they will soon ran out
Who are the damn bozos on this BUS?! Wars can get started this way…
Economic warfare can turn to real warfare at the drop of a dime…
The thing to remember there was no need for a war in Ukraine but the US / UK / NATO refused to talk to Putin about his security concerns for Russia , and the reason they refused is they new Putin would react with his military exactly what they wanted , the plan from the get go is to destroy Russia`s Economy and Russia`s Military , then they can concentrate on doing the same thing to China leaving the US as top dog once again.
the US is trying to destroy the economies of its European vassal states, then the US financial capitalist will buy things up for pennies on the dollar….including much of the assets in the public domain which they will force the EU governments to ‘privatize’ first and then sell off
the EU elites are totally corrupted and bought off by their US masters and will not suffer, but 500-600 million other people in the US the workers and the poor and middle classes etc, certainly will suffer, especailly this winter.
Look for lots of protests to begin soon in Europe.
I cannot stand whinners. West wanted to wean itself of Russian energy. Talked about it forever. US pushed Europe to block South Stream, Russian gas coming via Bulgaria inti Balkans, and via Hungary into Europe. Then Turk Stream became operational, but fought all the way.
So, now as Europe is doing everything they possibly could do to cut off Russan energy sources. — they whine that Russia is weapinizing energy!
What, they must have it and for free! Who is Russia to ask to be paid!
The deranged people in Washington and London expected the Russians to turn the other cheek, they never thought that the Russians would punch them in the face.
BTW, Americans weaponized energy, Russians retaliate in kind.