World

Limiting Russia’s oil prices will be the focus of the US and its allies


The United States and its European and Asian allies are at a critical juncture this week in terms of punishment on Russia and the urgent issue of energy prices as they discuss how to increase sanctions on Moscow at the United Nations General Assembly in New York this week.

Finance ministers from the Group of 7 have Officially endorsing the concept of price cap on Russian oil purchases, aimed at reducing the revenue Russia derives from oil and squeezing its economy further as President Vladimir V. Putin continues the war in Ukraine.

But officials from those countries have yet to to complete the price cap mechanism or self-determining prices, which is difficult to do because of the complexity of the energy market.

U.S. and European officials want to avoid a spike in energy prices before winter arrives. European leaders are grappling with high energy prices and their potential impact on domestic politics. Mr. Putin has cut some natural gas exports to European countries, in what the Biden administration has called the “weaponization” of energy supplies.

US officials and their counterparts are also expected to try to persuade countries outside the Group of 7 to comply with any price cap set. That includes China, India and Turkey, as well as other countries in Asia, Africa and Latin America.

“Limiting oil prices – if that works – depends on these countries’ willingness to follow the rules set by them,” said Maria Snegovaya, a postdoctoral fellow at Georgetown University. established by the West”. write about sanctions against Russia.

Some US officials say it may not be necessary to call on big buyers like China and India to officially sign on to the price-cap mechanism and be part of an alliance. They say these countries will use the ceiling to negotiate lower Russian oil prices, which will still cut Russian revenue.

US officials have also argued for a tougher option: strengthening price caps by threat of so-called secondary sanctions against companies from other countries that are not subject to that limitation. But officials say the Biden administration is unlikely to take that approach.

U.S. officials will use meetings this week at the United Nations and on the sidelines of the General Assembly to gauge responses from different countries to the price cap. American officials are also talking to their counterparts from countries that avoid directly criticizing Russia to try to persuade them to make explicit statements about the war or join a sanctions coalition.

President Biden is expected to try to muster greater support for Ukraine when he addresses the General Assembly on Wednesday. President Volodymyr Zelensky of Ukraine is scheduled to give a video speech on the same day.

“The UN provides a platform for US policymakers to encourage these countries to engage in sanctions and to block Russia’s active efforts to launch foreign platforms,” Snegovaya said. new delivery outside of established sites such as the United Nations”.

With all the pressure on countries in the sanctions alliance, including public outcry over rising energy prices, US officials will also need to spend a lot of money, analysts say. more energy into diplomacy to keep the alliance united.

John Gans, a former Pentagon official and author of “White House Warriors,” a history of the National Security Council, said: “Maintaining sanctions requires a lot of leadership. great. “If you don’t make it a priority, it’s going to fall by the wayside.”



Source link

news7d

News 7D: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button