Despite sanctions, Russia still makes billions in oil and gas sales. The US government wants to replace it with a price cap for Russian oil. Sounds crazy, but it can work.
Rising oil prices are plaguing Joe Biden everywhere. Last week, when US President Rehoboth strolled to the beach from his vacation home on the beach in shorts and a blue polo shirt, a press conference awaited him at the end of the walk and the usual question: what is he doing about the gas price hike. ? Recent Idea: The US government can keep the federal tax below 20 cents per gallon (3.8 liters).
Rising oil prices are plaguing Joe Biden everywhere. Last week, when US President Rehoboth strolled to the beach from his vacation home on the beach in shorts and a blue polo shirt, a press conference awaited him at the end of the walk and the usual question: what is he doing about the gas price hike. ? Recent idea: The US government can stop the federal tax of less than 20 cents per gallon (3.8 liters). It’s a little more than a drop on a hot plate. But Democrats are under great pressure to act on their frustrated electorate. That is why the government has already freed up oil reserves, allowed the addition of high ethanol content in the summer, and threatened to take action against oil companies for extortion. It does a little bit of everything. Experts expect petrol prices to rise to $ 6 a gallon (equivalent to $ 1.50 a liter) at the start of the holiday season. It may seem cheap to us, but for Americans it is a symbolic limit. Like other Western heads of government, Fidel is in a quandary: sanctions against Russia will hit its own people hard and hard as rising energy prices. Meanwhile, occupier Vladimir Putin is benefiting from rising oil prices. This is the scene that America wanted to avoid at any cost. Our sanctions were aimed at hitting the Russian economy, not ours. But four months after the start of the war, doubts are growing as to whether this will work. That is why the EU’s decision to impose an oil embargo on Russia has not met with enthusiasm in Washington, despite the US already suspending its – very low – imports from Russia in March. A European import embargo will raise oil prices, Treasury Secretary Janet Yellen has warned: “It will affect Europe and the rest of the world.” Yellen has an idea, it needs to square the circle. He wants to set a price cap for Russian oil – in other words, he is creating an anti-Russian buyer cartel. It is not clear how it should be. The United States put the idea on the table at the G7 summit in Schloss Elmau last weekend. The aim is to protect Russia’s oil supply to world markets, while restricting Putin’s revenues while preventing new price rises. The idea is not entirely new. Italian Prime Minister Mario Tragi proposed something similar to the import of natural gas from Russia, and during his meeting with Python in Washington he mentioned the creation of a “buyer’s cartel” for oil. Claudio Kalimberdi, a former chairman of the European Central Bank, praised Rystad Energy Oil expert on “understanding things better than the average politician.” He sees the European embargo as a reaction because Putin will sell his oil to India and China at a discount. In the end, the EU only strengthens the Asian competition by not attacking the occupiers in Moscow, warns Kalimberdi: “Now, Europe is shooting itself in the foot.” Europeans and Americans, for example, agree to pay 50 percent of the Brent price for Russian oil, or a fixed price of $ 50 per 159-liter barrel – whichever is cheaper. Kalimberty believes Putin risks selling his oil at a higher price elsewhere. He says Japan and South Korea will immediately join in such price controls. “China and India can probably say 51 per cent, but it takes two months to deliver to India and two weeks to deliver to Europe,” he argues. So, “basically, Putin will be forced to sell to Europe.” Yellen thinks in the same direction. There may be forex insurers for the pricing model, without which no oil tanker can sail at sea because accidents can easily cause billions in damage. They may be barred from insuring oil exports above the price limit. Since most shipping insurers are in Europe, it is not possible to export from Russia without a discount. The plan convinces realtor Pierre Andrews: “I can not think of any flaws.” He also doubts whether energy-hungry Asian nations will help Putin. “Why do China and India want to pay more for Russian oil? Those countries want to negotiate,” Andrew tweeted. Secretary of the Treasury Yellen has also raised the possibility of sanctions against countries that do not follow US price guidelines. Its plan could be embedded in an EU embargo, exempting Russian exports below the embargo. Then the oil will continue to enter the world market, but not as profitable as before Putin. Yet there seems to be great skepticism in Brussels and Berlin. The Germans see the mechanism as complicated, Bloomberg said. However, Europeans seem to be particularly concerned about another issue: the sanctions that the 27 EU member states have negotiated so hard will not hold a review.
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