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G7 price cap on Russian oil kicks in By Reuters

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G7 price cap on Russian oil kicks in By Reuters


¬© Reuters. Ukraine’s President Volodymyr Zelenskiy speaks during a joint news conference with Czech Prime Minister Petr Fiala (not seen), as Russia’s attack on Ukraine continues, in Kyiv, Ukraine October 31, 2022. REUTERS/Viacheslav Ratynskyi

(Reuters) – A Group of Seven (G7) price cap on Russian seaborne oil came into force on Monday as the West tries to limit Moscow’s ability to finance its war in Ukraine, though Russia has said it will not abide by the measure even if it has to cut production.

OIL PRICE CAP

* Russia, the world’s second largest oil exporter, will not sell oil that is subject to a Western price cap even if it has to cut production, President Vladimir Putin’s point man on energy said on Sunday.

* The Kremlin said the price cap would roil global energy markets but would not affect Russia’s ability to fund its military operation in Ukraine.

* The G7 nations and Australia on Friday agreed a $60 per barrel price cap on Russian seaborne after European Union members overcame resistance from Poland, which wanted it even lower.

* The $60 price cap on seaborne Russian oil is not serious and will do little to deter Russia from waging its war, Ukrainian President Volodymyr Zelenskiy said.

* Russia said it would continue to find buyers for its oil, despite what it said was a “dangerous” attempt by Western governments to introduce a price cap on its oil exports.

DIPLOMACY

* French President Emmanuel Macron drew criticism from Ukraine and its Baltic allies over the weekend for suggesting the West should consider Russia’s need for security guarantees if it agrees to talks to end the war.

* Putin is not sincere about peace talks with Ukraine while he is taking the war to a new level of “barbarism” by trying to turn off the lights of civilians, a top U.S. diplomat said.

FIGHTING

* Russian-installed officials said nine people were killed by Ukrainian shelling of a dormatory in the eastern Luhansk region.

* Ukrainian officials said one person was killed and three wounded by Russian rockets that hit the southern city of Kryvyi Rih.

* Zelenskiy said Ukrainian forces were holding positions along the front line, including near Bakhmut, viewed as Russia’s next target in their advance through Donetsk.

* Russia’s defence ministry said its troops were conducting successful operations in the area of Bakhmut and had pushed back Ukrainian attacks in the Donetsk direction.

* The head of U.S. intelligence said fighting in Ukraine was running at a “reduced tempo” and that militaries on both sides were looking to refit and resupply to prepare for a counter-offensive after the winter.

* Russia is likely planning to encircle the Donetsk Oblast town of Bakhmut with tactical advances to the north and south, Britain’s defence ministry said.

* Reuters could not verify battlefield reports.

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