What to know about the West's new efforts to slash Russia's oil revenue
NPR Online NewsNov 16, 2022
The Facts
Countries from the G7 and Australia agreed to join an EU proposal to cap the price of Russian oil exports at $60-per-barrel on Friday.
The move, set to go into effect on Dec. 5, is aimed at limiting the funds available to Russian Pres. Vladimir Putin and his country's war in Ukraine. US Treasury Secretary Janet Yellen said the agreement will help restrict Putin’s "primary source of revenue for his illegal war in Ukraine while simultaneously preserving the stability of global energy supplies."
The Spin
Pro-establishment narrative
The benefits of this agreement are two-fold: A cap on Russia's oil exports will further strain the resources available to Moscow for fighting its war in Ukraine while alleviating price instability if Russian oil is taken off the market.
Establishment-critical narrative
With countries such as China, India, and others unlikely to go along with the EU's proposal, it's highly unlikely that it will be successfully implemented or work. A price cap is a ridiculous idea.
Pro-Russia narrative
Not only does a cap on the price of Russian oil — which will hardly make a dent in Putin's profits — go against the principles of international trade and have grave consequences for the global energy market, but it also paves the way for setting price caps in other sectors.