Ukraine Sees Urgency in Capping Russian Oil Prices As Troops Mobilize
- Russia desperately needs to cap oil prices as Moscow escalates the war, a senior adviser to the Ukrainian president told Reuters.
- “We need to cut off the blood debt that the regime has used to kill our people,” said Oleg Ustenko, Volodymyr Zelenskyy’s chief economic adviser.
- The Group of Seven nations are working to set price caps to coincide with the European Union’s planned December oil embargo.
A top economic adviser to Ukrainian President Volodymyr Zelensky has told Russia that the need to limit Russian oil prices is becoming more urgent as Moscow plans to deploy more troops to fight in Ukraine. Reuters in a report published on Wednesday.
“Russia is fighting its last battle, so we must be more united, including on sanctions policy,” said Oleg Ustenko, Zelensky’s chief economic adviser. “We need to cut off the tools that the regime uses to kill our people. blood money.”
Russian President Vladimir Putin announced on Wednesday Russia will mobilize more troops Because of its war in Ukraine. Moscow’s army, which suffered numerous setbacks during the invasion, plans to muster up to 300,000 reservists. Putin also referred to Russia’s nuclear arsenal, saying the country would use all its resources to “defend our people.”
This G7 industrialized democracies Earlier this month, it agreed to work on a price cap for Russian oil to curb Moscow’s revenue. It has not been announced what the upper limit is.
“We are moving very fast on the price cap mechanism and discussions are almost finalized,” Ustenko told Reuters.
The G7 aims to activate price caps by Dec. 5, when the EU will impose a partial ban on Russian oil imports. The idea is to ban services such as insurance above the price cap to shippers carrying Russian oil.
India and China have become the largest importers of Russian crude since the war began in late February. The two countries bought an additional $9 billion in Russian crude in the second quarter compared with the first, according to the Financial Times.
On Wednesday, Russia’s Urals blend was at $71.05 a barrel, below international benchmark Brent crude at $87.74.