{"id":3735,"date":"2023-02-05T16:28:34","date_gmt":"2023-02-05T16:28:34","guid":{"rendered":"https:\/\/londonpost.news\/?p=3735"},"modified":"2023-03-23T18:51:19","modified_gmt":"2023-03-23T18:51:19","slug":"europe-bans-russian-diesel-other-oil-products-over-ukraine","status":"publish","type":"post","link":"https:\/\/brusselsindependent.com\/fr\/economy\/business\/europe-bans-russian-diesel-other-oil-products-over-ukraine\/2023\/02\/05\/admin1\/","title":{"rendered":"Europe bans Russian diesel, other oil products over Ukraine"},"content":{"rendered":"

FRANKFURT,<\/span> Germany<\/span> (AP)<\/span> –<\/span> Europe<\/span> on<\/span> Sunday<\/span> imposed<\/span> a<\/span> ban<\/span> on<\/span> Russian<\/span> diesel<\/span> fuel<\/span> and<\/span> other<\/span> refined<\/span> petroleum<\/span> products,<\/span> reducing<\/span> its<\/span> energy<\/span> dependence<\/span> on<\/span> Moscow<\/span> and<\/span> further<\/span> squeezing<\/span> the<\/span> Kremlin’s<\/span> fossil<\/span> fuel<\/span> revenues<\/span> as<\/span> punishment<\/span> for<\/span> its<\/span> invasion<\/span> of<\/span> Ukraine.<\/span>\u00a0
\n<\/span>
\n<\/span>The<\/span> ban<\/span> is<\/span> accompanied<\/span> by<\/span> a<\/span> price<\/span> cap<\/span> agreed<\/span> by<\/span> the<\/span> Group<\/span> of<\/span> Seven<\/span> United<\/span> Democracies.<\/span> The<\/span> goal<\/span> is<\/span> to<\/span> keep<\/span> Russian<\/span> diesel<\/span> flowing<\/span> to<\/span> countries<\/span> like<\/span> China<\/span> and<\/span> India,<\/span> avoiding<\/span> sudden<\/span> price<\/span> spikes<\/span> that<\/span> would<\/span> hit<\/span> consumers<\/span> around<\/span> the<\/span> world,<\/span> while<\/span> cutting<\/span> Moscow’s<\/span> budget<\/span> and<\/span> its<\/span> war-funding<\/span> profits.<\/span>
\n<\/span>
\n<\/span>Diesel<\/span> is<\/span> vital<\/span> to<\/span> the<\/span> economy<\/span> as<\/span> it<\/span> powers<\/span> cars,<\/span> trucks,<\/span> farm<\/span> equipment<\/span> and<\/span> factory<\/span> machinery.<\/span> Diesel<\/span> prices<\/span> are<\/span> rising<\/span> due<\/span> to<\/span> recovery<\/span> in<\/span> demand<\/span> from<\/span> the<\/span> COVID-19<\/span> pandemic<\/span> and<\/span> restrictions<\/span> on<\/span> refining<\/span> capacity,<\/span> contributing<\/span> to<\/span> inflation<\/span> in<\/span> other<\/span> commodities<\/span> around<\/span> the<\/span> world.<\/span>
\n<\/span>
\n<\/span>The<\/span> new<\/span> sanctions<\/span> create<\/span> uncertainty<\/span> about<\/span> prices<\/span> as<\/span> the<\/span> 27-nation<\/span> European<\/span> Union<\/span> finds<\/span> new<\/span> supplies<\/span> of<\/span> diesel<\/span> from<\/span> the<\/span> U.S.,<\/span> Middle<\/span> East<\/span> and<\/span> India<\/span> to<\/span> replace<\/span> those<\/span> from<\/span> Russia,<\/span> which<\/span> at<\/span> one<\/span> point<\/span> delivered<\/span> 10%<\/span> of<\/span> Europe’s<\/span> total<\/span> diesel<\/span> needs.<\/span> Those<\/span> are<\/span> longer<\/span> journeys<\/span> than<\/span> from<\/span> Russia’s<\/span> ports,<\/span> stretching<\/span> available<\/span> tankers.<\/span>
\n<\/span>
\n<\/span>The<\/span> price<\/span> cap<\/span> of<\/span> $100<\/span> per<\/span> barrel<\/span> for<\/span> diesel,<\/span> jet<\/span> fuel<\/span> and<\/span> gasoline<\/span> is<\/span> to<\/span> be<\/span> enforced<\/span> by<\/span> barring<\/span> insurance<\/span> and<\/span> shipping<\/span> services<\/span> from<\/span> handling<\/span> diesel<\/span> priced<\/span> over<\/span> the<\/span> limit.<\/span> Most<\/span> of<\/span> these<\/span> companies<\/span> are<\/span> located<\/span> in<\/span> Western<\/span> countries.<\/span>
\n<\/span>
\n<\/span>It<\/span> follows<\/span> the<\/span> $60<\/span> per<\/span> barrel<\/span> cap<\/span> on<\/span> Russian<\/span> crude<\/span> that<\/span> took<\/span> effect<\/span> in<\/span> December<\/span> and<\/span> is<\/span> set<\/span> to<\/span> work<\/span> in<\/span> the<\/span> same<\/span> way.<\/span> Both<\/span> the<\/span> diesel<\/span> and<\/span> oil<\/span> caps<\/span> can<\/span> be<\/span> tightened<\/span> afterwards.<\/span>
\n<\/span>
\n<\/span>Thomas<\/span> O’Donnell<\/span> said,<\/span> “If<\/span> we<\/span> set<\/span> a<\/span> price<\/span> cap,<\/span> it<\/span> will<\/span> keep<\/span> Russia’s<\/span> prices<\/span> down<\/span> without<\/span> causing<\/span> price<\/span> spikes<\/span> that<\/span> will<\/span> hurt<\/span> Western<\/span> economies<\/span> and<\/span> developing<\/span> nations.<\/span> Deny<\/span> it<\/span> and<\/span> end<\/span> [President<\/span> Vladimir]<\/span> Putin’s<\/span> war.”<\/span> You<\/span> can<\/span> deny<\/span> the<\/span> money,”<\/span> he<\/span> said.<\/span> Global<\/span> Fellow<\/span> of<\/span> the<\/span> Wilson<\/span> Center<\/span> in<\/span> Washington.<\/span>
\n<\/span>
\n<\/span>The<\/span> diesel<\/span> price<\/span> cap<\/span> is<\/span> set<\/span> roughly<\/span> at<\/span> how<\/span> much<\/span> Russian<\/span> diesel<\/span> is<\/span> traded<\/span> at,<\/span> so<\/span> it<\/span> won’t<\/span> take<\/span> effect<\/span> immediately.<\/span> The<\/span> main<\/span> problems<\/span> in<\/span> Russia<\/span> today<\/span> are<\/span> finding<\/span> new<\/span> customers<\/span> and<\/span> the<\/span> inability<\/span> to<\/span> avoid<\/span> price<\/span> ceilings.<\/span> However,<\/span> the<\/span> cap<\/span> is<\/span> intended<\/span> to<\/span> prevent<\/span> Russia<\/span> from<\/span> gaining<\/span> from<\/span> sudden<\/span> price<\/span> spikes<\/span> in<\/span> refined<\/span> oil<\/span> products.<\/span>
\n<\/span>
\n<\/span>Analysts<\/span> say<\/span> prices<\/span> may<\/span> surge<\/span> initially<\/span> as<\/span> the<\/span> market<\/span> settles<\/span> for<\/span> changes.<\/span> But<\/span> if<\/span> the<\/span> cap<\/span> works<\/span> as<\/span> intended<\/span> and<\/span> Russian<\/span> diesel<\/span> continues<\/span> to<\/span> flow<\/span> to<\/span> other<\/span> countries,<\/span> the<\/span> embargo<\/span> shouldn’t<\/span> cause<\/span> prices<\/span> to<\/span> skyrocket,<\/span> they<\/span> say.<\/span>
\n<\/span>
\n<\/span>Diesel<\/span> fuel<\/span> at<\/span> the<\/span> pump<\/span> he<\/span> has<\/span> been<\/span> empty<\/span> since<\/span> early<\/span> December<\/span> and<\/span> costs<\/span> \u20ac1.80<\/span> per<\/span> liter<\/span> ($7.37<\/span> per<\/span> gallon)<\/span> as<\/span> of<\/span> January.<\/span> According<\/span> to<\/span> the<\/span> weekly<\/span> oil<\/span> market<\/span> report<\/span> published<\/span> by<\/span> the<\/span> European<\/span> Union<\/span> Council,<\/span> 30.<\/span> Pump<\/span> prices<\/span> in<\/span> Germany,<\/span> the<\/span> EU’s<\/span> largest<\/span> economy,<\/span> fell<\/span> 2.6<\/span> cents<\/span> to<\/span> \u20ac1.83<\/span> per<\/span> liter<\/span> ($7.48<\/span> per<\/span> gallon)<\/span> as<\/span> of<\/span> January<\/span> 31.<\/span>
\n<\/span>
\n<\/span>The<\/span> ban<\/span> gives<\/span> him<\/span> a<\/span> 55-day<\/span> grace<\/span> period<\/span> for<\/span> diesel<\/span> loaded<\/span> on<\/span> tankers<\/span> by<\/span> Sunday.<\/span> European<\/span> Union<\/span> officials<\/span> say<\/span> importers<\/span> have<\/span> had<\/span> time<\/span> to<\/span> adjust<\/span> since<\/span> the<\/span> ban<\/span> was<\/span> announced<\/span> in<\/span> June.<\/span> Russia<\/span> made<\/span> more<\/span> than<\/span> $2<\/span> billion<\/span> from<\/span> diesel<\/span> sales<\/span> to<\/span> Europe<\/span> in<\/span> December<\/span> alone<\/span> as<\/span> importers<\/span> appear<\/span> to<\/span> be<\/span> hoarding<\/span> additional<\/span> purchases<\/span> ahead<\/span> of<\/span> the<\/span> ban.<\/span>
\n<\/span>
\n<\/span>Europe<\/span> has<\/span> already<\/span> banned<\/span> Russian<\/span> coal<\/span> and<\/span> most<\/span> of<\/span> its<\/span> crude<\/span> oil,<\/span> while<\/span> Moscow<\/span> has<\/span> cut<\/span> off<\/span> most<\/span> natural<\/span> gas<\/span> supplies.<\/span><\/p>","protected":false},"excerpt":{"rendered":"

FRANKFURT, Germany (AP) – Europe on Sunday imposed a ban on Russian diesel fuel and other refined petroleum products, reducing its energy dependence on Moscow and further squeezing the Kremlin’s fossil fuel revenues as punishment for its invasion of Ukraine.\u00a0 The ban is accompanied by a price cap agreed by the Group of Seven United […]<\/p>","protected":false},"author":2,"featured_media":3736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":""},"categories":[23,2425,2480,2482,562,2407],"tags":[132,463,464,933,1003,1004,1005,1006],"jetpack_featured_media_url":"https:\/\/brusselsindependent.com\/wp-content\/uploads\/2023\/02\/OIL.webp","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts\/3735"}],"collection":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/comments?post=3735"}],"version-history":[{"count":3,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts\/3735\/revisions"}],"predecessor-version":[{"id":3740,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/posts\/3735\/revisions\/3740"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/media\/3736"}],"wp:attachment":[{"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/media?parent=3735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/categories?post=3735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brusselsindependent.com\/fr\/wp-json\/wp\/v2\/tags?post=3735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}