After weeks of intense negotiations, European Union ambassadors signed an agreement this Friday. grab for the price Oil Russian transported by ship $60 per barrel a correction mechanism to keep the figure 5% below the market price in order to Limiting Moscow’s income and continuing to suffocate its economy For his war in Ukraine. The cap is part of the agreement closed by the G7 countries—Germany, Canada, the United States, France, Japan, the United Kingdom, and Italy—and the purpose is to in effect before Monday December 5, the date on which the EU embargo began to apply to Russian crude oil, sixth package of sanctions against the Kremlin.
27’s ambassadors wore weeks trying to close a deal and circumventing the hitherto resisting Baltic states and Poland’s veto, arguing that it would be a setback in terms of sanctions as it would allow the Kremlin to set a very high limit – around $70 in initial proposals. He will continue to finance his war in Ukraine. The agreement will enter into force after the completion of the written procedure initiated by the Czech Republic’s rotating EU presidency this Friday, and will affect the EU and non-G7 third countries.
“I welcome the EU agreement to set the maximum price for Russian oil. To paralyze Russia’s energy revenues, stop the war machine Estonian Prime Minister Kaja Kallas was personally involved in the negotiations of the agreement, which would ban the transportation of Russian oil to third countries and insurance services if it exceeds $60 per barrel. .
Twenty-seven agreed in June. Prohibit the purchase, import or transfer of Russian oil. Restrictions – with temporary exceptions For countries that are particularly dependent on Russian supply due to their geographical location, it is valid for crude oil imports by pipeline – from December 5 for crude oil and from February 5, 2023 for other refined petroleum products. As most Russian oil coming into the EU comes by sea, the restrictions will cover almost 90% of Russia’s oil imports to Europe by the end of 2022.
Gas cap negotiations
At the same time, Twenty Sevens continues to work on the proposal put forward by the European Commission a week ago to set a cap on the gas price in the TTF market. A large group of countries, especially Spain, defined the Brussels plan as follows: unrealistic, inadequate and unpretentious and the Czech EU presidency are working at full speed to obtain a consensus document acceptable to most member states at an extraordinary meeting of energy ministers on 13 December.
The Brussels proposal establishes a correction mechanism that will kick in if the price of gas exceeds 275 euros per megawatt hour for two consecutive weeks. If the difference between the price of liquefied natural gas (LNG) in international markets exceeds 58 euros for 10 days. After the initial discussion and working group discussions among the Twenty-seven last week, Prague is now activation limit of 264 € for 5 consecutive days, compared to Brussels’ asking two weeks and limiting the international €58 price difference to 5 days. Countries like Italy, Greece, Poland, Slovakia and Belgium are demanding an even lower fixed ceiling of 160 euros, or a dynamic ceiling that will be defined each month and linked to different indices, not just the TTF.
Source: Informacion
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