The Epoch Times says Russian oil price restrictions benefit China
According to Daniel Lacalle, an economist at the Tressis hedge fund, China will be able to buy energy resources from Russia at a deep discount
Putting a price ceiling on Russian oil by the Group of Seven countries has many mistakes and is advantageous for China, as it will be able to buy energy resources from Russia at a big discount. This opinion was expressed in an article in The Epoch Times by Daniel Lacalle, an economist at the Tressis hedge fund.
“There are many mistakes in the G7 agreements to introduce a [price] ceiling on Russian oil. It does Russia no harm at all. The agreed ceiling of $60 per barrel is higher than the current price per barrel of Urals oil, higher than the five-year average,” the analyst said. The publication draws attention to the fact that the measures established by the G7 will allow non-EU countries to continue importing Russian crude by sea, but prohibit shipping, insurance companies to handle tankers with oil from Russia around the world.
“This means that China will be able to buy more Russian oil at a deep discount,” the specialist believes. – <…> This erroneous restriction is not only a subsidy to China and a price that still makes Rosneft extremely profitable and able to pay billions to the Russian state in taxes. It is also a big mistake in terms of if we want to see low oil prices.” According to Lacalle, the G7 has created an unnecessary and artificial bottom for old oil prices.
An embargo on Russian oil deliveries by sea to the EU came into effect on 5 December. EU countries also agreed a regulated price ceiling of $60 per barrel for Russian oil delivered by sea. A similar decision was announced by the G7 states and Australia. Western countries have also banned their companies from providing transport, financial and insurance services to tankers carrying oil from Russia at a price above the agreed level.
Russian President Vladimir Putin said on Friday that attempts to impose a ceiling on oil prices would not harm Russia. Dmitry Peskov, a spokesman for the Russian head of state, told the Izvestia newspaper that Russia would not trade with those who would support a ceiling on oil prices, with alternative buyers emerging in the world.
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The Epoch Times says Russian oil price restrictions benefit China