CNN
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The US and its allies are trying to limit further Russian earning power and finance its war efforts with a new price limit for the product such as gasoline and fuel oil, a senior Treasury official announced Friday – adding sanctions on Russia’s energy sales in response to the country’s invasion of Ukraine.
“Our intention is not to collapse the Russian economy,” the official told reporters on Friday. “Our intention is to make it impossible for the Kremlin to continue making the choice to support the economy and also pay the price of their war.”
Agreement between the United States, G7, European Union and Australia The US Treasury Department said it imposed a price ceiling on “petroleum products of Russian origin transported by sea”. There are two prices: one applied to “premium relative to crude” petroleum products such as diesel, kerosene and gasoline, which will be capped at $100 per barrel, and petroleum products.” discount to crude oil” such as fuel oil, will be capped at $45 per barrel.
“What we’re focused on is cutting revenue,” the official said. “We are also pursuing their supply chain and military industrialization complex so that they cannot use the money they have to buy the weapons they need. Our approach to this is really pursuing what is crucial to the Kremlin’s war effort and its ability to support its economy.”
In December, same group of implementation cap crude oil prices – which Treasury officials said hampered Russia’s ability to finance war. They added that Russia has “publicly acknowledged” the price ceiling is hurting the country’s economy. Data released by Russia shows that monthly tax revenue from energy sales has fallen by 46% month-on-month.
Officials ignore reports that, despite numerous sanctions, the Russian economy is still expected to recover and possibly even surpass Germany and Britain. Economically, the country “no longer operates like a normal economy,” said a senior finance ministry official.
“They have largely shut down, meaning if you have Russian money, they will let you keep sending money into Russia, but you can’t withdraw it. They no longer allow foreign capital to enter Russia,” the official said. “They need to spend more money to support their economy because they become a closed economy.”
The official said the fact that Russia’s budget deficit is growing “because the war is costing them more” because of “the courage of the Ukrainian people” and “weapons” is a surprise. for them.
