China to retain close energy ties with Russia
On Monday, China made it clear that it will retain close energies ties with Russia after the EU’s introduction of a price cap on Russian oil.
In a declaration, the Chinese Ministry of Foreign Affairs notes that the nation will continue its collaboration on energy with Russia on the basis of respect and mutual benefit.
Russian news agency RIA first reported the news on Monday, the day when several agreements taking aim at Russian oil exports came into effect.
During a state visit to China last week, President of the European Council Charles Michel urged Chinese President Xi Jinping to prevail on Russia to observe international rules.
Michel states that he urged President Xi ”to convince the Kremlin and Russia to end the war and to respect the sovereignty of Ukraine.”
With a price cap of USD 60 per barrel of oil, Western nations are trying to exert pressure on Russia’s economy as a result of the war in Ukraine.
The price cap has found support in the EU, the Group of Seven and Australia, meaning that these nations will pay a maximum of USD per barrel of Russian crude.
This is in addition to an import ban on seaborne Russian oil, which is set to take effect in most EU nations.
There is some disagreement on how impactful these measures will be.
”Though the measures will most certainly be felt by Russia, the blow will be partially softened by its move to sell its oil to other markets such as India or China,” writes Forbes in an analysis.
Given that the most important shipping and insurance companies are based in G7 nations, the price cap will make it difficult for Russian players to sell oil at higher prices.
Russia, the second largest oil producer after the US, reported on Sunday that it will not recognize the price cap. If necessary, the nation will slash oil production.
The sale of oil and gas to Europe has been a main source of foreign currency for Russia since Soviet geologists discovered oil and gas in Siberia in the decades following World War II.
EU, G7, Australia approve price cap of USD 60 on Russian oil exports
Russia spurns Western price cap on oil
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