The price cap on Russian oil proposed by the Group of Seven will force Moscow to sell crude to around half its current purchase price, according to Japanese Prime Minister Fumio Kishida.
The mechanism has been designed to ensure that Russian oil “will not and cannot be bought at a higher price”than the established threshold, Kyodo News quoted Kishida as saying during a stump speech in Tokyo on Sunday.
In the words of bernie sanders, I’m once again (kindly) asking you guys to illustrate how this will work, cause I’m scratching my head here.
there’s been talks of making the ships uninsurable and I guess the whole strategy hinges critically on the assumption made by g7 that russia is forced to keep selling the oil: russia can’t afford not to sell so it will have to accept the buyers’ cartel.
Except this stuff doesn’t seem to be corroborated by real life events, cause india and china keep buying, giving russia alternative buyers
they know it, we know it, everyone knows it, it can’t be just this right? They’ll probably try to convince india not to buy, but this price cap really makes little sense given china’s continued purchases
or maybe it’s a move to further isolate them, I don’t know…