Africa-Press – Lesotho. The UK and EU on Friday jointly announced a significant reduction in the crude oil price cap on Russian exports, in a move aimed at “targeting Putin’s critical oil revenues.”
The cap has been lowered from $60 to $47.60 per barrel, directly targeting Russia’s oil revenues, which have already declined by 35% year-on-year to May, according to the UK government.
British Treasury chief Rachel Reeves, speaking at the G20 summit in South Africa, said the move was designed to apply “decisive” financial pressure on Russia.
“The UK and its EU allies are turning the screw on the Kremlin’s war chest by stemming the most valuable funding stream of its illegal war in Ukraine even further,” she said.
“This decisive step to lower the crude oil price cap will target Russia’s oil revenues and ramp up the pressure on Putin by exploiting his biggest vulnerability – while keeping energy markets stable.”
The UK government said the decision is intended to “clamp down on Putin’s oil industry,” undermining the global market value of Russian crude.
Foreign Secretary David Lammy said: “As Putin continues to stall on serious peace talks, we will not stand by.
“That’s why we’re striking at the heart of the Russian energy sector alongside the EU. Together we will continue to apply relentless pressure on Putin, squeezing his critical oil industry and cutting off funding for his illegal war in Ukraine.”
Officials framed the measure as part of a broader international campaign to force Russia to negotiate an end to the conflict.
“Every financial blow against Russia’s oil revenues is another step towards a just and sustainable peace in Ukraine, and a step towards security and prosperity in the UK and beyond, which is a key foundation of the government’s Plan for Change,” the UK government said.
According to the statement, to date, the UK has sanctioned more than 250 vessels involved in transporting Russian energy and pledged to provide £3 billion ($2.2 billion) annually in military aid to Ukraine “for as long as it takes.”
In addition to the oil price cap, the UK also announced new sanctions against Russian intelligence operatives it accuses of spreading “chaos and disorder” on Putin’s orders.
The UK and EU, according to the statement, remain united in their determination to “ramp up economic pressure on Putin,” with the aim of pushing him to the negotiating table to achieve what they describe as a “just and lasting peace” in Ukraine.
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