Journalists write that the plan to limit oil prices may face many obstacles. But if the decision is made, Moscow should hit its revenues hard.
The member states of the European Union are trying to reach a political agreement within a few weeks that will set a cap on the price of Russian oil. Bloomberg writes about it.
New threats to the use of nuclear weapons by Russian President Vladimir Putin and the declaration of mobilization in Russia reportedly led to such decisive actions. That’s why the European Union is trying to join forces with the United States to hit Moscow’s revenue as hard as possible.
However, as noted in the material, such a plan faces many obstacles. The reality is that sanctions decisions require unanimity. This aspect is especially important because each country has its own needs for energy resources.
Representatives of member states will meet at the weekend to discuss new sanctions, which may include additional restrictive measures against individuals and sectors such as technology and luxury goods, in addition to restrictions on oil, the material said.
Sources told reporters that many details have yet to be resolved, including setting a price cap. It also remains unclear how such a restriction would be enforced, alongside the EU embargo on Russian oil and the ban on services required to deliver the oil agreed earlier this year.
The publication states that member state representatives in Brussels will try to reach a preliminary agreement on a price ceiling before the informal meeting of EU leaders in Prague on 6 October. But Hungary needs to intervene.
For example, Hungarian Prime Minister Viktor Orban has reportedly launched a bloc-wide campaign to criticize any energy sanctions in his country. For example, Hungary delayed the adoption of an EU sanctions package against crude oil in June and signed it only after receiving exemptions that still allowed Budapest access to pipeline oil.
Previously Focus He reported that European production was transferred to the United States due to high energy prices. Europe may enter an era of deindustrialisation, as the US working environment appears much more benign, especially for manufacturers in the chemical, steel and other energy-intensive industries.
We also remember that the sanctions deprived Russians of imported alcohol. According to the results of the first six months of 2022, imports of all alcoholic beverages to Russia decreased by approximately 35% to 32.65 million liters.