The cap is set to take effect on Dec. 5, the same day the European Union will impose a boycott on most Russian oil -- its crude that is shipped by sea. The EU was still negotiating what the price ceiling should be.
Insurance companies and other firms needed to ship oil would only be able to deal with Russian crude if the oil is priced at or below the cap. Most of the insurers are located in the EU or the United Kingdom and could be required to participate in the cap. Without insurance, tanker owners may be reluctant to take on Russian oil and face obstacles in delivering it.Universal enforcement of the insurance ban, imposed by the EU and U.K.
"It is essential for the global crude markets that Russian oil still finds markets to be sold, after the EU ban is operative," he added. "In the absence of that, global oil prices would skyrocket."A cap of between US$65 and US$70 per barrel could let Russia keep selling oil and while keeping its earnings to current levels. Russian oil is trading at around $63 per barrel, a considerable discount to international benchmark Brent.
China and India might not go along with the cap, while China could form its own insurance companies to replace those barred by U.S., U.K. and Europe.
Sanctions are going nowhere. Despite military and intelligence planning assistance against Russian targets by the US and NATO to Ukraine. Russia is the winner with its military superiority and advanced strike performance. Retired Col.Macgregor's analysis.
Nothing, thats what!
Remember the beginning of the war and the west sanctioned Russia to end the war. Then Russia ended with more money and the war continues. 🤔