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G7 summit in Elmau: Putin enriches himself from the oil embargo - a US proposal is intended to prevent him from doing so 

2022-06-26T09:07:40.189Z


G7 summit in Elmau: Putin enriches himself from the oil embargo - a US proposal is intended to prevent him from doing so  Created: 06/26/2022, 10:53 am By: Astrid Theil Joe Biden, President of the USA, disembarks Air Force One upon his arrival at Munich Airport. His proposal for an oil price cap will be discussed at the G7 summit in Elmau. © Daniel Karmann/dpa The EU oil embargo is currently l


G7 summit in Elmau: Putin enriches himself from the oil embargo - a US proposal is intended to prevent him from doing so 

Created: 06/26/2022, 10:53 am

By: Astrid Theil

Joe Biden, President of the USA, disembarks Air Force One upon his arrival at Munich Airport.

His proposal for an oil price cap will be discussed at the G7 summit in Elmau.

© Daniel Karmann/dpa

The EU oil embargo is currently leading to growing revenues in Russia.

A proposal from the USA is now intended to change this.

Elmau - The Ukraine war will be the central topic at the G7 summit in Elmau.

The G7 member states will be particularly concerned with the question of how the sanctions against Russia can be made more efficient.

All in all, the previous sanctions are only having a slow effect and are even having the opposite effect in certain areas.

The EU oil embargo against Russia, for example, is driving up the price of oil and, with it, Putin's income.

According to current estimates, Russia will earn a third more from oil this year than in 2021.

US President Joe Biden proposes a price limit for Russian oil

An idea by US President Joe Biden is now intended to stop this development.

He suggests capping the price.

The world community should set a price limit for Russian oil.

Insurance policies could be leveraged to implement this pricing model, without which no oil freighter sails across the sea, because accidents can quickly add up to billions in damage.

Insurance companies could be prohibited from insuring oil shipments above the price limit.

Since most ship insurers are based in Europe, exports from Russia would hardly be possible without the price reduction.

That's the theory.

At best, Putin could try to overturn the ban via local providers combined with state guarantees.

Price cap for Russian oil: EU skeptical

The concept of a price constraint has been circulating among politicians and economists for some time.

According to Spiegel

information , Italy's Prime Minister Mario Draghi

recently proposed something similar for natural gas imports from Russia.

In Brussels and Berlin, however, skepticism about US President Biden's proposal seems to be high so far.

The finance agency

Bloomberg

reported that the German government considers this mechanism to be quite complicated.

Above all, however, the Europeans seem to be concerned that the laboriously negotiated package of sanctions will not survive revision.

G7 summit in Elmau: Advice on price caps

Countries like India and China, which are currently buying Russian oil in bulk, are unlikely to join the price cap.

On the second day of the summit, some partners from the rest of the world are to be convinced of the plan.

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Ex-President and Putin confidante with a clear announcement: USA should “come crawling itself”

Host and Chancellor Olaf Scholz invited the heads of government of South Africa, Senegal, India, Indonesia and Argentina.

So far, none of the countries have taken a clear position in the Ukraine war.

The proposal by US President Biden will therefore be an important topic of discussion at the G7 summit in Elmau from various aspects.

at

Source: merkur

All news articles on 2022-06-26

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