[Asia Economy Reporter Jeong Hyunjin] On the 3rd (local time), regarding the Western countries' decision to cap the price of Russian crude oil at $60 per barrel (approximately 78,000 won), Russia stated that it "cannot accept" this, while Ukraine said it is "not serious."
According to Bloomberg News and others, the Kremlin said the day before that it "will not accept this price cap" set by the European Union (EU) on Russian crude oil prices, and added, "We will inform how we will respond once we finish assessing the situation."
Earlier, the EU agreed the previous day to set the price cap on Russian crude oil at $60 per barrel to make it difficult for Russia to finance its war. This is about $10 lower than the current price of Russian Urals crude oil, which is $70 per barrel. The Group of Seven (G7), including the United States, Japan, and the United Kingdom, as well as Australia, also decided to join this Russian crude oil price cap system.
Accordingly, the Russian crude oil price cap system is expected to be implemented as early as the 5th, and the G7, EU, and Australia will prohibit insurance, transportation, and other maritime services for Russian crude oil exported at prices exceeding the cap.
In response to this decision by Western countries, Ukrainian President Volodymyr Zelensky also said in a national address on the same day, "I cannot say that limiting oil prices to a fairly comfortable level for a terrorist state's budget is a serious decision."
He claimed, "By setting the cap at $60 instead of $30, as Poland and the Baltic states demanded, Russia's annual budget will increase by about $100 billion." He added, "Russia has already caused significant losses to all countries worldwide by deliberately destabilizing the energy market," and pointed out, "This money will be used to further destabilize those very countries that are trying to avoid making serious decisions."
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