China News Service, December 4th, comprehensive foreign media reports, on December 3rd local time, Russian Federal Security Council Vice Chairman Medvedev posted a still photo of the American horror movie "The Shining" on the social platform Telegram - male The protagonist Jack Torrance's hair and clothes are covered with ice and snow, and he is freezing in the snow.
Russian media pointed out that Medvedev used this to satirize Western countries' decision to set a ceiling on Russian oil prices.
Medvedev posted stills from the American horror movie "The Shining" on the social platform Telegram.
After days of debate, the European Union, the Group of Seven (G7) and Australia have successively announced that they will set a price cap of US$60 per barrel on Russia's seaborne oil exports in order to hit Russia's oil revenue.
The Russian side rejected this and countered that the price limit on Russian oil would disrupt market rules and lead to a surge in global energy prices.
How much impact can this price limit have on the Russian economy?
According to the analysis, not only will the effect that the United States and its allies want not be achieved, but implementation will also face resistance, and it will exacerbate turmoil in the global energy market.
Data map: European Union headquarters.
Controversial $60
European Commission President von der Leyen confirmed on the 2nd that the EU has reached a consensus on the controversial issue of setting a ceiling on Russian oil prices.
In particular, she pointed out that this move will strengthen sanctions against Russia and reduce Russia's economic income.
According to this price ceiling, if the price of oil exceeds the threshold of US$60 per barrel, the provision of insurance, financial and other services for Russian oil transportation will be prohibited.
The agreement still needs to be formally approved through a written process.
The G7 initially proposed a price ceiling of $65 to $70 a barrel.
In the past three months, Russian oil prices have been around $65 to $75 a barrel, close to the price ceiling proposed by the G7.
Diplomats from Poland, Estonia and other countries believe that the price proposed by the G7 is too high, and the upper limit should be lowered to hit Russia's income.
However, countries such as Greece, Cyprus and Malta have called for higher price caps, which they believe will be a blow to their huge shipping industries.
The Associated Press revealed that due to Poland's very tough attitude, it was not until the last moment, that is, on December 2, that it finally let go and agreed to limit the price to US$60 per barrel.
Polish ambassador to the European Union Sados said that the ninth round of sanctions against Russia will be launched immediately.
Estonian Prime Minister Kallas said that the price ceiling will be between 30 and 40 US dollars to cause substantial harm to Russia.
"However, $60 is the best we can get."
On May 31, 2022, an oil tanker docked at the ISAB refinery terminal in Sicily, southern Italy.
ISAB is owned by Russian multinational energy company Lukoil.
Europe will face a real "winter"
In this regard, Russian President’s Press Secretary Peskov said that Russia will not accept the oil price ceiling and will decide how to arrange work after a quick analysis.
Ivan Abramoff, first deputy chairman of the Economic Policy Committee of the Russian Federation Council (upper house of parliament), said on the 3rd that imposing a price cap on Russian oil will lead to a surge in demand, a breakdown in supply chains, and a surge in global energy prices.
After making such a decision, he said, there would be very serious consequences for ordinary Europeans and the European economy, who were facing a real "winter" in which the European economy would lose all its competitive advantages.
Medvedev, vice chairman of the Russian Federal Security Council, also released a still photo of Jack Torrance, the hero of "The Shining", freezing in the snow, with the text "We have finally made a decision on setting a price ceiling for Russian oil... "Russian media pointed out that this move means that European countries will freeze due to the cold.
Many Western media and experts believe that this price limit not only fails to achieve the desired effect of the United States and its allies, but also faces resistance in implementation, and will aggravate the turmoil in the global energy market.
Brooks, chief economist at the Institute of International Finance in Washington, said the price cap should be implemented this summer when a barrel of oil is around $120. "Given today's oil prices, the price limit is unlikely to be binding."
The British "Economist" magazine pointed out that the price limit order seems very smart, but Russia can use non-western tankers and insurance companies that are not affected by the price limit order, which will lead to a reduction in oil exports and a surge in global oil prices, " After all, the global energy system is far more flexible than people think."
Russian Deputy Prime Minister Novak, who is in charge of energy work, said on the 2nd that since the relevant contracts have been signed from the end of October to the beginning of November, it is expected that Russian oil exports will not decrease in December.
He emphasized that Russia only supplies oil to consuming countries that support the market mechanism, and there is still a great demand for Russian oil in the world market.