Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Russian mobilization hikes urgency of oil price cap -Ukrainian presidential advisor

Published 09/21/2022, 11:24 AM
Updated 09/21/2022, 11:28 AM
© Reuters. Oleg Ustenko, economic advisor of Ukrainian President speaks during an interview with Reuters in Berlin, Germany, September 21, 2022. REUTERS/Annegret Hilse

By Sarah Marsh

BERLIN (Reuters) - Russia's first mobilization since World War Two makes more urgent the need for a cap on Russian oil prices to cut off the "blood money" supporting its war in Ukraine, a senior economic adviser to Ukrainian President Volodymyr Zelenskiy told Reuters.

Separately, Oleg Ustenko criticized updated European Union guidance on sanctions on Russian coal shipments that he said could enable companies to transport Russian coal to third countries, which was not in the original spirit of the deal.

The shift was "unacceptable" and he could not understand that kind of "flexibility", he said on Wednesday during a visit to Berlin as part of a tour of Europe to discuss sanctions.

"Russia is putting up a last fight, so we have to be even more united, including on sanction policy," Ustenko said. "We need to cut off the regime's blood money, that they're using to kill our people."

The Group of Seven (G7) wealthy democracies is trying to find ways to limit Russia's lucrative oil export revenue following its invasion of Ukraine in February.

Several different countries have banned imports of Russian crude and fuel, but Moscow has managed to maintain its revenues through increased crude sales to Asia, particularly China and India.

The G7 hopes to curb them with the global cap on prices for Russian crude it wants to launch by Dec. 5, when new European Union sanctions initiate a ban on Russian oil imports.

"We are moving quite fast with the price cap mechanism, the discussions are almost finalized," said Ustenko.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Russia has vowed to halt sales to countries imposing the price cap mechanism. Ustenko said he did not believe it could follow through on this.

"The Russians do not have any other choice rather than to follow up the common rules which are on the market," he said.

Separately, Ustenko said Ukraine had been able to move more grain than he had expected under a U.N.-brokered deal for exports via the Black Sea. The war was inevitably lowering future yields, however, due to mined fields and difficulty tending to the crop.

"It's just another argument why the war has to be stopped," Ustenko said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.