WASHINGTON, Dec 2 (Reuters) – The White Home on Friday welcomed information that the European Union was “coming collectively” on a $60 per barrel value cap on Russian seaborne oil, and stated it remained satisfied that the deal ought to assist restrict Russian revenues.
Poland on Friday stated it had agreed to the European Union’s deal for a $60 per barrel value cap on Russian seaborne oil, permitting the EU to maneuver ahead with formally approving a deal proposed by the Group of Seven (G7) nations.
The worth cap goals to scale back Russia’s earnings from promoting oil, whereas stopping a spike in world oil costs after an EU embargo on Russian crude takes impact on Dec. 5.
“We nonetheless imagine … {that a} value cap will assist restrict Mr. Putin’s skill to profiteer off the oil market in order that he can proceed to fund a conflict machine that continues to kill harmless Ukrainians,” nationwide safety spokesman John Kirby instructed reporters.
Kirby stated Washington believed $60 per barrel was the suitable stage for the worth cap and would enable it have the specified impact. “We predict it is the correct quantity and we expect it’s going to have a constructive impact.”
Kirby stated the intention of the worth cap had all the time been twofold – to restrict Russia’s skill to revenue from the oil gross sales whereas serving to steadiness provide and demand.
“Only a month or so in the past, the indications have been that Mr. Putin was charging $100 per barrel, so this might be a big drop,” Kirby stated, including that the coalition companions reserved the appropriate to regulate the worth cap sooner or later.
“We’ll maintain monitoring it, reviewing it, to see if that is proper, and does it have to be dialed up or down based mostly on how issues go,” he stated.
Reporting by Andrea Shalal and Steve Holland; Modifying by Andrea Ricci
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