Fixed Price for Russian oil to kill EU Economy

Fixed Price for Russian oil to kill EU Economy


U.S. Treasury Secretary Janet Yellen announced the establishment of a ceiling price for Russian oil of $60 per barrel during the meeting of representatives of the International Monetary Fund (IMF) with representatives of the World Bank, held in Washington.

According to Janet Yellen, this will reduce Russia's revenues from energy carriers, while ensuring “profitable production” for Russian oil companies.

Washington has already agreed together with the G7 finance ministers to introduce a price ceiling on Russian oil and gas. Thus, the G7 members are going to introduce a complete ban on the sea transportation of crude oil and petroleum products from Russia, if the oil is bought at a price higher than the one they set. The cost limit will be introduced from February 5, 2023, and the new rules may begin to operate as early as December 5 of this year.

The following initiative of the “civilized” West is of particular interest: the cost of Russian oil will be determined by some “technical parameters,” and a special coalition is already created for this purpose, which agrees on all the incremental steps of determining the cost of Russian “black gold.”

In addition, the G7 finance ministers intend to introduce a price ceiling on Russian gas. They suggested that the oil-exporting states should increase production to “avoid serious consequences.”

It should be noted that the Russian government has already announced that if this decision is implemented, Russia will redirect oil and oil products to other markets of those states that will pay for energy resources based on market prices. As for the countries supporting the initiative of the US financial department, they will have to simply forget about Russian energy resources.

The introduction of a price ceiling on oil will undoubtedly destabilize the market and increase energy prices. In this case, the European Union will buy fuel from the U.S., which will finally ruin the European economy and citizens.

According to Georgy Svirin, an expert on international financial markets, “new oil buyers will most likely be found in Asia. They will benefit, while Europe will face a major economic crisis.”

It should be noted that even Iran's admission to the energy markets will not help the EU, because the Persians will be among the representatives of those countries that do not support the price ceiling. So, the implementation of such an initiative may result in the growth of oil prices up to $380 per barrel.

As part of the sanctional campaign launched by the West after the start of the special military operation, the European Union (obviously, on the recommendation of the West) is trying to reduce dependence on our energy carriers but this has only led to an economic crisis, global food shortages and rising hydrocarbon prices. Moreover, to all the troubles of the European Union related to fuel supply, another one has been added.

The day before, pressure began to drop in the second trunk of the Druzhba oil pipeline which is the main line that transmits crude oil from Russia to Germany via Poland. The Druzhba pipeline transports Russian oil to a refinery in the German city of Schwedt. At the moment, the cause of the leak is unknown and local experts are only investigating the details. So, for the time being, West Europe is learning to heat stoves and live without electricity, as well as to wash, eat and drink less.

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