CNN
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The US and allies are trying to further limit Russia’s ability to make money and finance its war efforts with new price limits on products like gasoline and fuel oil, a senior Treasury official announced Friday – adding to sanctions on Russian energy sales in response to the country’s invasion of Ukraine.
“Our intent is not to crash the Russian economy,” the official told reporters Friday. “Our intent is to make it impossible for the Kremlin to continue to make the choice of propping up the economy and also paying for their war.”
The agreement between the US, the G7, the European Union and Australia places a price cap on “seaborne Russian-origin petroleum products,” the US Department of Treasury said. There are two price levels: one applies to “premium-to-crude” petroleum products like diesel, kerosene and gasoline, which will be capped at $100 USD per…
2023-02-03 17:01:56 US, EU, G7 and Australia announce new price cap on Russian petroleum products
Article from www.cnn.com Leaders from the United States of America, the European Union, the G7 and Australia have announced a global price cap on certain Russian petroleum products. This decision was established in response to ongoing negotiations and attempts to regulate the global energy market.
The agreement requires that all traders adhere to a unified price cap for certain petroleum and petroleum products. This applies to all regions of the world and will be in effect for a set duration of time. All traders involved in the purchase and sale of these products must abide by the new global price limits.
In the statement, leaders from the US, EU, G7, and Australia noted that the price caps will help to ensure the stability of the global energy market. This is particularly important as Russia is one of the world’s leading producers of these commodities. By implementing the agreement, officials hope to protect consumers from any potential price spikes while supporting the production of quality petroleum products.
The leaders also emphasized that the Russian government remains committed to providing a fair and equitable market for all traders. This agreement, they argue, is designed to protect the interests of consumers, producers and traders alike.
All global traders will be required to comply with the new price caps by the set deadline or face certain consequences. This agreement is not just limited to Russia, as other producing nations, such as Venezuela and Iran, might see similar price caps enforced in the near future.
The decision is an important milestone in the global transformation of the energy market and is sure to be met with criticism and support by all sides. Time will tell how the agreement is ultimately implemented, but the current rhetoric demonstrates that leaders are serious about creating a safe and stable market for all participants.
