G7 begins to press Russia on Ukraine with oil price cap

  • Russia says it will not export oil according to the minimum
  • Zelensky says price caps will do nothing to stop Russia
  • Regions of Ukraine resort to the suspension of the electricity plan
  • Ukrainian troops are on the front line – Zelensky
  • Russia says that the troops are conducting successful operations in Bakhmut

KYIV, Dec 5 (Reuters) – A cap on Russian crude oil prices came into effect on Monday as the West seeks to limit Moscow’s ability to finance its war in Ukraine, although Russia has said it will not abide by the rules. measure even if it should reduce production.

G7 countries and Australia agreed on Friday to a $60-a-barrel price for Russian crude after EU members overcame Polish resistance. Russia is the second largest oil exporter in the world.

Ukrainian President Volodymyr Zelensky said the world had shown weakness by imposing restrictions at this level, while Russian Deputy Prime Minister Alexander Novak said on Sunday it was a “brutal intervention” that violated free trade rules.

Novak, a Russian government official on oil, gas and nuclear energy, said: “We are working on mechanisms to prohibit the use of price caps, no matter what level they are set, because such interference could lead to the market will become more unstable”. and coal.

“We sell oil and oil products only to those countries that cooperate with us in the market conditions, even if we have to reduce production a little.”

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The G7 agreement allows Russian oil to be shipped to third countries using G7 and European Union tankers, insurance companies and credit institutions, only if the cargo is purchased at $60 or less per barrel.

Industry players and a US official said in October that Russia could have access to enough tankers to transport as much of its oil as possible, underscoring the limits of the most ambitious plan yet to curb Russia’s wartime revenue.

According to Zelensky, the $60 threshold will do nothing to stop Russia from waging war in Ukraine. “You do not consider it a serious decision to impose such a limit on Russian prices, which is very convenient for the budget of a terrorist state.”

The United States and its allies have imposed extensive sanctions against Russia since invading Ukraine on February 24 and sending billions of dollars to the Ukrainian government.

But French President Emmanuel Macron faced criticism over the weekend from Ukraine and its Baltic allies, saying the West must consider Russia’s need for security guarantees if Russia agrees to negotiate an end to the war.

Mykhailo Podoliak, Zelensky’s aide, said the world needs Russia’s security guarantees, not the other way around.

PLANNED BUILDING

In Ukraine, Russia has been cracking down on electricity infrastructure since early October, causing blackouts and leaving millions without heat as temperatures plummet.

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Russia says the attacks are not targeting civilians and are aimed at reducing Ukraine’s warfighting capabilities.

Ukraine says the attacks are a war crime.

In a video address on Sunday, Zelensky called on citizens to be patient and strong in facing the hardships of winter.

“To get through this winter, we need to be stronger and more united than ever,” he said.

Kyiv Mayor Vitaly Klitschko said on Telegram that the power outages starting Monday would be limited to planned “stabilization” outages before restarting, but added that the situation remained “difficult.”

Ukraine’s largest electricity supplier, DTEK, said power outages were expected in three other regions – Odessa, Donetsk and Dnipropetrovsk in southern and eastern Ukraine.

The governor of the region said that 85 percent of customers with electricity in Kherson, where Russian forces left the southern city last month, are largely without electricity.

SHOOTING ON THE FRONT LINES

On the battlefront, Zelensky said Ukrainian forces are holding positions on the front line, including near Bakhmut, which is considered Russia’s next target in its advance through Donetsk.

The Ukrainian army said that the Russian forces are pushing forward in the directions of Bakhmut and Avdiivka to improve tactical positions. The General Staff of the Armed Forces of Ukraine increased, about 16 settlements, including Bakhmut and Avdiivka, were shelled by tanks, mortars, barrels and rocket cannons.

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The Ukrainian army added that Russian forces are engaged in confrontation along the Zaporizhzhia front line, while targeting four settlements in the Donetsk region and six towns in the Zaporizhzhia region.

The Ministry of Defense of Russia said that its forces are conducting successful operations in the Bakhmut region and have repelled Ukrainian attacks in the direction of Donetsk.

Russian authorities in occupied Donetsk said that Ukraine fired at least 10 Grad missiles into the city. There are no reports of casualties.

Valentin Reznichenko, governor of Dnepropetrovsk region, said that one person was killed and three others were injured by Russian missiles in Kryvyi Rih, one of the largest cities in southern Ukraine.

“They targeted an industrial plant,” Reznichenko said on the Telegram messaging app, without elaborating.

Reuters could not independently confirm reports on the battlefield.

The head of the American intelligence service said that the conflict in Ukraine is going on at a “slow pace” and that the military of both sides is trying to rebuild and resupply in preparation for a counterattack after winter.

Reporting by Nick Starkov and Reuters bureaus; Written by Himani Sarkar; Edited by Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

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