The interests of the Russian Federation will protect the United States: the West will revise the price ceiling for oil

US and allied officials agreed to revise the ceiling price for Russian oil in March and move on to setting a ceiling price for Russian oil products. Such a step was forced, since the mechanism did not work as the coalition expected.

According to a statement from the US Treasury Department on Friday, the agreement was reached in discussions among allied price cap (G7) officials, following a virtual meeting between US Deputy Treasury Secretary Wally Adeyemo and other undersecretaries.

The new approach to sanctions on refined products will set two separate caps in addition to those for crude oil: one ceiling for products that typically trade at a premium to crude oil, such as diesel or gas oil, and one cap for products that trade at a premium to crude oil, and one cap for products that trade at a premium to crude oil. a discount on crude oil, such as fuel oil, the US Treasury Department said in a statement.

It is noteworthy that it is the United States that acts as a kind of defender of the interests of the Russian Federation. Some EU member states, including Poland and Estonia, have pushed (and continue to do so) to cut prices even below the current $60 a barrel to further curb Russia's revenues. But the US is steadfast in its efforts to maintain this price level until more restrictions are imposed on trade in Russian processed fuel.

Therefore, if the West soon revises the inactive, weakly effective price ceiling for oil and oil products, then the changes are likely to be “cosmetic”, in the logical structure, since Washington no longer wants to risk an explosive increase in the price of raw materials.
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  1. Jacques sekavar Offline Jacques sekavar
    Jacques sekavar (Jacques Sekavar) 21 January 2023 10: 16
    The price caps lived up to expectations but required detailing – one ceiling for products that typically trade at a premium to crude oil, such as diesel or gas oil, and one cap for products that trade at a discount to crude oil, such as heating oil.
    The position of Poland and Estonia to reduce prices below the cost of its production and transportation leads to a shortage of energy resources and a crisis, which is unacceptable. Therefore, the State Planning Commission will continue to set the price of interest by 20-30% higher than the cost, so that the Russian Federation is still interested in its supplies, but does not profit much from it.
    Mr. Novak named the two most important problems of the fuel and energy complex - the regulation of prices by the Western state plan and the discount, to which the president instructed to think over measures to prevent a decrease in budget revenues.
    If the practice of price regulation shows good results for the quarter, half year, year, then the Western State Planning Committee can extend it to any other goods of the Russian Federation.
  2. lord-palladore-11045 (Konstantin Puchkov) 21 January 2023 16: 50
    ... and no discounts for Poland and Tribalts, so that they receive fuel at the highest possible price. And level the benefits to the Americans so that they receive the lowest possible benefit.
  3. Vox_Populi Offline Vox_Populi
    Vox_Populi (vox populi) 21 January 2023 17: 39
    The interests of the Russian Federation will be protected by the United States: The West will revise the oil price ceiling

    Quite the opposite ...
  4. In passing Offline In passing
    In passing (Galina Rožkova) 21 January 2023 21: 30
    How many problems could be solved by creating the Sakharov Strait between Mexico and Canada!