Tension on sanctions is growing: Russia threatens to cut off all oil supplies to Europe

The Russian government has categorically rejected the limit on the price of its oil imposed by Western countries in retaliation for the invasion of Ukraine, and has threatened to completely cut off the supply of crude oil to countries that support this measure, thus launching a new trade dispute that could affect the global economy.

The European Union bloc, the United States, Britain, Canada, Japan and Australia agreed on Friday to set a maximum price of $60 a barrel for the Russian oil they buy. The price cap goes into effect tomorrow, along with an EU embargo on Russian seaborne oil.

The goal, they stressed, is “to prevent Russia from gaining from its aggressive war against Ukraine” and to “support stability in world energy markets”.

Russia’s permanent representative to international organizations in Vienna, Mikhail Ulyanov, was adamant. “Starting this year, Europe will live without Russian oil,” he tweeted.

“Moscow has already made it clear that it will not supply oil to countries that support price limits, which go against the market,” he remarked.

Even Kremlin spokesman Dmitry Peskov announced that it will not accept the price capbut he used a more moderate tone clarifying that they will analyze the situation before deciding on a specific response.

The political agreement of the European Union and the G7 guarantees that if the market price of Russian oil falls below $60 a barrel, the cap will be updated so that it is at least 5% below the value it would is exchanged.

The measure also applies to policies taken out by shipping companies with European insurers, which control most of that market.

The European Union, the United States and their allies then try to limit the income Russia getsthe second largest oil exporter in the world, thanks to its exports to partner countries such as China or India, and reduce the financing of the war in Ukraine.

The Ukrainian government, for its part, backed the measure and this Saturday predicted that the oil price ceiling would sink Russia. “We always achieve our goal and the Russian economy will be destroyed and Russia will have to take responsibility for all its crimes,” said Ukrainian presidential chief of staff Andriy Yermak.

“Destroy the economy” of Russia

At the same time, the Ukrainian official demanded that the roof be halved, in order to further damage the Kremlin.

“It would be necessary to lower it to $30 to destroy the enemy’s economy faster,” he wrote on Telegram. This position is also supported by Poland, one of the main critics of the war of Russian President Vladimir Putin.

On the battlefield, meanwhile, fighting intensified in the East. Russian troops continued attacks in the Donetsk region this weekend but made little progress amid fierce resistance from Ukrainian forces trying to strike back on some sectors of the front.

“The enemy tried to launch counterattacks near the towns of Sladkoe, Shevchenko and Novomaiorke of the Donetsk People’s Republic, south of Donetsk city,” said Russian Defense Ministry spokesman General Igor Konashenkov. In his usual daily report, the military stressed that the Ukrainian attacks were repulsed with artillery fire and attack aircraft.

The governor of the Lugansk region, the Ukrainian Sergei Gaidai, argued that the fighting is particularly “hard” in the east, because “the Russians have had time to prepare” after the setbacks suffered in recent months.

According to British military intelligence, Russian troops are concentrating their military efforts on capturing Bakhmut, an important communications hub located north of Donetsk.

If successful, this would allow them to advance towards Kramatorsk and Slovianks, the main Ukrainian military strongholds in the region.

“However, the campaign has been disproportionately costly compared to the possible earnings,” DI said in its usual report, in which it stressed the possibility that Bakhmut’s capture is a “political and symbolic goal” for Russia.

In any case, according to British analysts, logistical problems and the shortage of supplies are holding back the offensive plans of the Russian army.

Source: agencies