Us has approved a cap on the price of russian oil, set to come into force on monday. the cap is intended to restrict revenues available to russia for its alleged malign activities in ukraine. us treasury secretary janet yellen said the price cap would limit the revenues of russian president vladimir putin, which he has been using to fund his invasion. dmitry peskov, the kremlin spokesman, responded to this measure by saying russia would not accept it and was analyzing the move. uk chancellor jeremy hunt also stated that the uk would continue to look for new ways to clamp down on putin’s funding streams.
Cap on the price of russian oil was approved by the us and is set to come into force on monday. an eu-wide ban on russian crude oil imported by sea also comes into force on 5 december. countries that sign up to the policy will only be permitted to purchase oil and petroleum products transported via sea that are sold at or below the price cap. the us has already implemented a ban and the uk is planning to phase it out by the end of the year.
Us and its western allies suggested $60 (â£48) for a barrel of seaborne russian crude oil, which ukraine said should be halved. the cap is intended to restrict revenues available to russia for its alleged malign activities in ukraine. western allies are also planning to deny insurance to tankers delivering russian oil to countries that do not adhere to the price cap. russia has started to look for other markets, such as india and china, to sell its oil. according to the international energy association, in 2021, prior to the war, more than half of russia’s oil exports went to europe. eu countries have been trying to reduce their dependence on russian crude oil.