(new: Explanatory sentence on the functioning of the oil price cap in the 3rd paragraph)
Kyiv/LONDON (dpa-AFX) – Energy supplies in particular are financing the Russian war of aggression in Ukraine. Now the European Union (EU), the leading western industrialized countries (G7) and Australia want the revenues from President Wladimir Putin noticeably diminish.
They want to dictate to Russia the price at which it can sell its oil on the world market – no more than 60 US dollars (57 euros) per barrel (159 liters).
It’s supposed to work like this: For transport and the necessary services such as insurance, European shipping companies are only allowed to take on shipments to third countries such as China and India if the price is not higher than the cap. It is estimated that shipping companies from the EU operate more than half of all tankers worldwide.
More than nine months after the start of the war, an EU oil embargo against Russia is to take effect gradually from Monday.
Ukrainian President Volodymyr Zelenskyy doubts whether the measures will have enough effect. The price cap was too high, he criticized in his daily video speech on Saturday and called for tougher penalties for the leadership in Moscow.
Following the start of the EU embargo and the price cap, two further steps follow: After stopping sea imports, Germany also wants to stop Russian oil deliveries via the Druzhba (Friendship) pipeline by the end of the year.
Consumers are also feeling the effects of the upheavals on the global energy markets. According to plans by the federal government, unjustified tariff increases are to be put under the planned gas and electricity price brake. Price increases should be banned until the end of 2023 – unless the supplier can prove “that the increase is objectively justified,” says the draft price brakes that have been introduced in the Bundestag.
What else was important at the weekend for the Ukraine war, here is a brief summary:
US intelligence: Russia’s capacity for spring offensive unclear
The US secret services expect the war to slow down in the winter. That can already be observed. Both sides were attempting to regroup for spring fighting, US intelligence coordinator Avril Haines said at a military forum in Simi Valley, California, on Saturday. There is a “certain degree of skepticism” in intelligence circles as to whether the Russian armed forces are even prepared for combat in March. In this regard, the view of the Ukrainians is more optimistic.
British experts: Russian approval of the attack has fallen sharply
According to British experts, the Kremlin will find it increasingly difficult to justify the war at home. This emerges from the daily intelligence report from the Ministry of Defense in London. “Given that Russia is unlikely to achieve any significant battlefield successes in the coming months, it is likely to be increasingly difficult for the Kremlin to garner even the tacit approval of the populace,” it said.
Nasa: Russia has harvested billions worth of Ukrainian wheat
According to the US space agency Nasa, Russia harvested wheat worth around a billion dollars (around 950 million euros) from Ukrainian fields this year. Around 5.8 million tons of wheat were harvested from fields not under Ukraine’s control, said Nasa Harvest, the US space agency’s food security and agriculture program. For the survey, Nasa Harvest uses satellite data and modeling together with several partner institutions.
Record arms deal: Estonia buys multiple rocket launchers in USA
Estonia is arming: In the largest arms deal in its history to date, the Baltic NATO member is acquiring six US Himars multiple rocket launchers. The purchase contract worth more than 200 million US dollars (about 190 million euros) was signed on Friday, according to the Estonian Defense Investment Center in Tallinn./rom/DP/he