Update (1015ET): It did not take long for the Kremlin to respond to the G-7 plan to impose price-caps on Russian oil, with Deputy Prime Minister Alexander Novak warning that Moscow will ban exports of oil and other petroleum products to countries that impose a cap on the price of Russian crude. Novak made the remarks to reporters in Moscow on Sept. 1, according to Russian state media Tass, which came as Western powers were preparing to meet on Sept. 2 to agree on a Russian oil price cap.
Western sanctions against Russia are the most ill-conceived and counterproductive policy in recent international history. Military aid to Ukraine is justified, but the economic war is ineffective against the regime in Moscow, and devastating for its unintended targets. World energy prices are rocketing, inflation is soaring, supply chains are chaotic and millions are being starved of gas, grain and fertiliser. Yet Vladimir Putin’s barbarity only escalates – as does his hold over his own people.
Bloomberg reported Wednesday that the US and its allies have discussed trying to cap the price of Russian oil around $40-$60 per barrel as the West wants to limit Russia’s profits without sending the price of oil even higher. Oil is currently hovering around $100 per barrel on the global market.
The U.S. Administration is considering imposing secondary sanctions on buyers of Russian oil as a means to deprive Putin of oil revenues and undermine Russia’s position as an energy export powerhouse in the long term, the New York Times reported on Thursday, quoting current and former U.S. officials.