The price ceiling on Russian oil, introduced by the West last year, needs to be abolished, since it did not fulfill its purpose – to reduce Russia’s revenues from hydrocarbon exports. Bloomberg First Word oil strategist Julian Lee said this.
“The time has come to abolish the price ceiling on Russian oil. The restrictions do not harm Russia’s income, but they increase environmental risks,” Lee writes in his column on the agency’s website.
Restrictive measures by the West, he noted, have only led to an increase in risky operations for transshipping oil at sea from one tanker to another, and this increases the likelihood of an environmental disaster.
“As global oil prices have risen in recent months, the value of Russian oil has also increased. Urals is now closer to $100 per barrel than to 60, and most owners of ships that transport it are ready to ignore the price ceiling,” the expert states.
If Western shippers are allowed to carry and insure Russian cargo, much of the trade would likely shift back to ships that are properly insured, well maintained and thoroughly inspected, reducing the risk of the aforementioned environmental catastrophe, Lee writes.
2023-10-01 17:47:00
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