Oct 28, 2022 18:30 GMT
Washington and its allies are preparing to ban companies from their countries from shipping, financing and insuring Russian oil starting December 5.
The White House would have decided to delay the establishment of a price cap for Russian oil until after the mid-term legislative elections, which will be held on November 8, concerned about the electoral cost that such a decision could have for the Democrats, reported The Wall Street Journal, citing government sources.
“Officials do not plan to set a price ceiling before the US mid-term elections,” the paper writes, adding that the no final conditions on how the cap would work This is due to expectations of volatility in the oil market ahead of December 5, when Western restrictions on the purchase of Russian oil will come into force.
Washington and its allies are preparing to ban companies from their countries from shipping, financing and insuring Russian oil starting December 5, unless oil is sold below a set priceso they expected to finalize the plan at least a month in advance to prepare the oil markets.
This Thursday, the Joe Biden Administration announced that it is reviewing the terms of the cap on Russian oil prices and that it plans to ease the conditions for applying restrictions. An earlier version of the plan, presented by the US Treasury Department, provided for the introduction of a price cap of between 40 and 60 dollars per barrel.
Earlier, Russian President Vladimir Putin warned in reference to the plan that Russia will not supply its resources to other nations if it contravenes its economic interests.
“We will not supply anything at all if it is against our interests, in this case economic. We will not supply gas, oil, coal, fuel, or anything,” the president said.