Issue with oil production cuts is that Russia still loses money in that case. Plus Urals is already traded with a significant discount compared to Brent, currently its market price is lower than the $60 "ceiling". The situation was worse at the beginning (when Russian export fell 1.5 mln barrels/day) due to lack of insurers, now the exports are slowly going up but are still lower than before the embargo. However, with China opening up, we can expect an upward trend for the global oil prices which will ultimately test the effectiveness of that "ceiling".
Miscellaneous News
- Thread starter bd popeye
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Russia will redirect its metal exports from Western countries to alternative markets due to sanctions imposed by the EU and US, Trade Minister Denis Manturov said on Monday. Moscow named China, Türkiye, South East Asia, member states of the Russia-led Eurasian Economic Union and CIS countries as priority areas for diversifying metal supplies. According to Manturov, trade flows will also focus on the Latin American, African and Middle Eastern markets. Speaking at a meeting with Russian Prime Minister Mikhail Mishustin, Manturov noted that “our enterprises, with the participation of trade missions, are already reorienting exports,” adding that the state will provide measures of support for logistics.
That statement by Blinken was bizarre.
He again defended the withdrawal of US troops from Afghanistan, assuring that this decision allowed "unconditional" support for Ukraine to face Russian forces. "If we stayed in Afghanistan, it would be much more complicated to provide this aid, and that others could provide Ukraine, to resist and repel Russia," Blinken said.
Another bizarre statement by him concerns the US poll on whether or not to support Ukraine.
"We don't do politics based on polls. We do policy based on the interests of the United States and the interest of the United States is clearly to support and help Ukraine defend itself from this Russian aggression," Blinken said when asked about recent polls showing the decline public support for the conflict in Ukraine.
On Monday, Dec. 5, a Chicago Council on Global Affairs poll found that only 40% of Americans believe the United States should maintain its current level of support for Ukraine indefinitely. In addition, the poll found that Americans remain divided on whether the United States should support Ukraine "as long as it takes": 48% continue to support that view, up from 58% reported in July.
Russia can potentially swap and reverse flow of usual Russian imports from Central Asian Republic and divert delivery to China via pipeline instead. No?
I am pretty sure that Elon Musk will be just another American conservative nutjob figure in 2-3 years. I have no idea why he involved himself with politics when he was universally regarded as a very successful and smart entrepreneur who was pushing the boundaries of tech. Now he is becoming another Tucker Carlson.
No, the existing Power of Siberia gas pipelines to China are not connected to the fields and pipelines serving Europe. This will change with the planned Power of Siberia 2 pipelines, which will start construction in 2024.
this number quoted by Novak for budget revenue from European sales of gas sales which are 3X of 2021 numbers. Russia overbuilt margin into projects. The Russia China gas sales is 19% over contract amount this time.
Russia-Turkey trade this year will easily reach $60b to $80b. which basically replace Russia-Germany trade to large extent. but these are minor numbers in overall context once you look at Mideast.
Strangelove said:
Russian President Vladimir Putin has signed a decree in response to the Western price cap on the country’s oil exports
Putin bans all oil sales to ‘price cap’ states
The move is in response to a Western coalition price-limit on Russia’s seaborne oil exports
President Vladimir Putin has signed a decree on retaliatory measures to the West’s price cap on Russian oil exports. Tuesday's ratification is in response to the punitive measure taken by the EU, G7 countries, and Australia, which came into effect earlier this month.
The presidential decree bans the supply of oil and petroleum products from Russia to countries which apply a price cap in their contracts. It also prohibits deliveries if the contracts directly or indirectly specify the cap.
According to the , which was published on the government’s website, the ban on oil supplies in response to the price cap comes into effect on February 1, 2023 and is valid until July 1, 2023. The effective date of the ban on supplying petroleum products will be determined later by the government.
The president can grant special permission for the supply of oil and oil products prohibited by the price ceiling, according to the decree. The Russian Ministry of Energy will monitor compliance with the presidential order on retaliatory measures.
The $60-per-barrel price cap on Russian seaborne oil exports was introduced by the EU, G7 countries, and Australia on December 5. It bans Western companies from providing insurance and other services for Russian oil shipments unless the cargo is purchased at or below the set price.
The Kremlin vowed to respond to the measure in a way that would best serve Moscow’s interests, warning it would not trade with nations that support the price ceiling. Deputy Prime Minister Aleksandr Novak said that Russian oil will still be in high demand despite the latest sanctions on the country’s exports. By imposing a price cap, Western countries will only trigger further energy inflation due to scarce supply, the minister said, adding that Russia views such types of non-market mechanisms as unacceptable.
Russia will not do “business as usual” with the EU now that it has declared “hybrid war” on Moscow, Foreign Minister Sergey Lavrov has said
No more ‘business as usual’ with EU – Moscow
The bloc has done the US’ bidding at the expense of its own interests, the Russian FM has said
Relations between Moscow and Brussels are now at their “lowest point,” Russia’s foreign minister, Sergey Lavrov, told TASS in an interview published on Tuesday. The EU has declared a “hybrid war” on Moscow by unquestioningly following the US, the minister added.
Brussels' policies have only hurt the interests and well-being of EU citizens themselves, Lavrov said. He also accused Washington of barring EU nations from conducting dialogue on energy with Moscow, even though Russia’s supplies of fuel provided Europe with “unprecedented prosperity” for decades.
Following the launch of Moscow’s military operation in Ukraine, the EU began gradually reducing Russian energy imports through sanctions, which include a ban on EU imports of seaborne Russian oil, as well as a $60-per-barrel cap on Russian seaborne crude.
In late July, EU member states agreed on a plan to reduce their gas consumption by 15% over the coming months to reduce their dependence on Russian energy. These policies, coupled with the sanctions and the conflict in Ukraine, have led to an energy crunch in the EU, with gas prices climbing to record highs.
Russia will “no longer do ‘business as usual’” with partners such as these, Lavrov warned, adding that Moscow has no intention of “banging its head against a wall,” as it can find countries to work with beyond Europe.
Nevertheless, Moscow is prepared to cooperate with more pragmatic European leaders in the future, the foreign minister said. “If some nationally-oriented politicians emerge [in Europe] who understand all the benefits of equal and mutually beneficial partnership with Russia, I can assure you, there will be no issues on our side,” he said.
“We are realists. We will continue to work with those few Europeans that cherish friendship with Russia. We will not cooperate with Russophobes,” Lavrov added.
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Is Japan also included in this ban since Japan implemented the price cap?
No more Sakhalin-2 oil for Japan from Feb?
Russia should do it to punish a vassal.
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