Russia is reacting to the European Union’s latest decision on oil. The Kremlin is threatening to stop exports as a result of the imposition of maximum prices for raw materials.
On December 5, the European Union not only imposed an embargo on the import of Russian oil to member states by sea, but also set a price ceiling for raw materials supplied via pipelines. The Kremlin promises revenge.
Russia threatens the EU
As of today, Member States buying crude oil from Russia cannot pay more than $60 per barrel. For comparison, a barrel of Brent now costs $86 (this is almost the cheapest figure since the beginning of the war), and American West Texas Intermediate is $80.
Interestingly, both in Poland and Ukraine it was much less, only $30 per barrel. Freezing the price at this level should have further hit Russia’s ability to finance military action. However, Member States have opted for a much higher level.
According to the President of Ukraine Volodymyr Zelensky, this amount is clearly overstated. In his Sunday speech, he said it was not a “major decision” because it would leave Russia in a comfortable position with revenues of around $100 billion a year.
Russia, you want to protect yourself from the EU mechanism
Russian Deputy Prime Minister Alexander Novak said on Sunday that the Kremlin is preparing a mechanism that would allow the EU to bypass the price ceiling. However, he did not explain what that decision should consist of.
At the same time, the Deputy Prime Minister noted that Russia intends to suspend oil supplies to those EU countries that decide to apply the maximum price ceiling.
Source: Wprost
