Berlin does not fear Putin’s threat to Russian oil

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Vladimir Putin never stops shouting in the desert. After brandishing the nuclear threat ad nauseam, the head of the Kremlin announced, on Tuesday, December 27, a ban on the sale of oil to anyone who wishes to fix its price. But this decision, to be applied from February 1, will have no “practical significance”, assured the German government on Wednesday.

“I don’t want to say that it is meaningless, but it has no practical meaning. We have already been preparing since the beginning of summer to replace Russian oil, he commented during a press briefing. spokesperson for the Ministry of Economy and Climate. According to European leaders, 90% of Russian oil exports towards the EU will already be stopped until the end of 2022 to protest against the Russian offensive in Ukraine.

Read alsoIn response to EU price caps, Russia must cut its oil production by 7% in early 2023

Limited short-term impact

Russia will ban from February 1, for a period of five months, the sale of its oil to foreign countries using the Russian black gold price cap. This maximum price was set at the beginning of December, after several months of negotiations, at 60 dollars per barrel by the 27 member countries of the EU, the great powers of the G7, and Australia ; and aims to deprive Moscow of significant revenue to finance its military intervention in Ukraine, even if, in reality, the measure is likely to have a limited impact in the short term, the price of the barrel of Russian oil currently fluctuates around 65 dollars, which is barely more than the fixed limit.

“We have always worked to guarantee security of supply and it will continue to be guaranteed, regardless of whether this decree has been issued or not,” explained the spokesperson.

A modest increase for black gold prices

In fact, only oil sold by Russia at a price equal to or less than 60 dollars can continue to be delivered. Beyond this maximum limit, it is forbidden for companies to provide the services that allow its maritime transport (cargo, insurance, etc.).

Faced with this decision by Moscow on Tuesday, the price of black gold, which was already the highest in three weeks, rose first but the ascent was short-lived. The price of a barrel of Brent from the North Sea for delivery in February finally ended modestly by 0.48% to 84.33 dollars.

(By AFP)

Source: Challenges in real times : accueil from

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