US welcomes EU price cap deal on Russian oil

“A price cap will help limit Mr. Putin’s ability to profiteer off the oil market so that he can continue to fund a war machine that continues to kill innocent Ukrainians,” National Security Council spokesman John Kirby told reporters.

“So, we welcome the progress that our EU partners are making on this and I look forward to seeing whatever the final announcement is,” he added.

The agreement on the price cap came after days of intense negotiations by EU officials, and aims to hit Russia’s revenues from oil exports and sales.

When asked about Biden’s remarks Thursday saying he was prepared to speak with Russian President Vladimir Putin about ending the conflict in Ukraine, Kirby said Biden was not indicating “now” is the time for talks.

“Mr. Putin has shown no indication that he’s willing to sit down and talk and to end this war,” Kirby told the virtual press briefing.

“The President also said something yesterday and he says it a lot but I think it’s worth revisiting. That the war could end today,” he added.

Biden’s remarks came during a joint press conference with French counterpart Emmanuel Macron, saying that he is prepared to speak with Russian President Vladimir Putin while also emphasizing that the Russian leader has not yet demonstrated a willingness.

Kremlin, in response, said that Russia is not ready for negotiations with the US on the condition of “withdrawal from Ukraine,” but Putin remains open to talks.

Source: Anadolu Agency

G7, Australia join EU on Russian oil price cap

A statement said the EU took a similar step earlier in the day and countries reached a consensus on a maximum price of $60 for seaborne Russian-origin crude oil.

“With this decision today, we deliver on the commitment of G7 Leaders at their summit in Elmau (Germany) to prevent Russia from profiting from its war of aggression against Ukraine, to support stability in global energy markets and to minimise negative economic spillovers of Russia’s war of aggression,” it added.

The decision on the price cap on Russian-origin petroleum products will take effect Feb. 5, it stated.

Price cap discussed for long time

The G7 and EU countries were negotiating about imposing a price cap on Russian oil. Last week, the G7 proposed a price cap of $65 to $70 per barrel.

The European Union Commission proposed a $60 cap for oil transported from Russia by sea to reach a consensus on negotiations between member states.

In addition to the cap, the EU is working on a new price-limiting mechanism that will allow for a reassessment of the price cap every two months.

The mechanism will ensure the new price cap is kept 5% below market prices.

The cap will take effect Dec. 5 in conjunction with the EU’s decision to cut off crude oil supplies from Russia by sea.

Russia produces about 10% of the world’s oil production.

Russian officials announced that they would refuse to sell oil to countries agreeing to the price cap.

Source: Anadolu Agency