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G7 to implement Russian oil price cap ‘urgently’

JEAN-FRANCOIS MONIER / AFP

AFP | by Sebastien ASH

G7 industrialised powers vowed Friday to move urgently towards implementing a price cap on Russian oil imports in a bid to cut off a major source of funding for Moscow’s war in Ukraine.

The G7 said it was working towards a “broad coalition” of support for the measure but officials in France urged caution, saying a final decision could only be taken once all 27 members of the European Union had given their assent.

Households on the continent have borne the brunt of rising energy prices, with governments under pressure to alleviate the pain of the resulting high inflation.

“Russia is benefitting economically from the uncertainty on energy markets caused by the war and is making big profits from the export of oil and we want to counter that decisively,” German Finance Minister Christian Lindner said in a press conference after the move was announced.

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The aim of the price cap on oil exports was to “stop an important source of financing for the war of aggression and contain the rise in global energy prices”, he added.

Ahead of Friday’s decision, Kremlin spokesman Dmitry Peskov sounded a clear warning.

The adoption of a price cap “will lead to a significant destabilisation of the oil markets,” and force American and European consumers to pay the price, he said.

And Russia’s Deputy Prime Minister Alexander Novak had warned on Thursday that Moscow would “simply not supply oil and petroleum products to companies or states that impose restrictions,” according to Russian news agencies.

‘Powerful tool’

At a summit in June, the G7 leaders agreed to work towards implementing the ceiling on crude sales.

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In their statement, finance ministers from the G7 said they would “urgently work on the finalisation and implementation” of the long-considered measure, without specifying the cap level.

The price cap was “one of the most powerful tools we have to fight inflation and protect workers and businesses in the United States”, US Treasury Secretary Janet Yellen said in a statement Friday. 

She said the measure already was beginning to influence prices, with countries that have not yet committed to join the cap able to negotiate lower prices from Russia.

“We’re already seeing this initiative pay off because countries that are buying Russian oil are signing deals with Russia to sell oil at greatly discounted prices,” Yellen said on MSNBC.

She said the capped price “will be set at a level that will continue to make it profitable for Russia to produce,” rather than follow through on Moscow’s threat to shut-in their oil and keep it off world markets.

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The G7 move would block Russia from getting any kind of service, including maritime insurance, on its petroleum shipments unless the product is sold at or below the cap, she explained.

And Yellen noted that G7 countries provide the vast majority of such services, including maritime insurance, 90 percent of which come from Britain and the EU. 

A senior US Treasury official told reporters that the cap would include three prices, one for crude oil and two for refined petroleum products.

The French finance ministry said technical work on the price cap was still in progress.

“It is clear that no final decision can be taken until we have consulted and obtained unanimous support from all 27 member states of the European Union,” it said.

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“We support all measures that reduce the income that Russia derives from the sale of oil,” French Finance Minister Bruno Le Maire added.

EU Commissioner Paolo Gentiloni said the bloc aims to find a deal by December 5 for crude oil and February 5 for petroleum products.

‘Broad coalition’

The G7 also voiced ambition to extend the measure beyond the bloc, saying it was seeking to form a “broad coalition” of support for the oil price cap to “maximise” the effectiveness of the measure.

The ministers urged “all countries that still seek to import Russian oil and petroleum products to commit to doing so only at prices at or below the price cap”.

The push to get as many countries as possible to go along with the cap is expected to be a key topic for discussion by leaders at the G20 summit in Bali on November 15 and 16.

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The initial cap would be set “at a level based on a range of technical inputs” the G7 ministers said, adding that its effectiveness would be “closely monitored”.

Analysts warned, however, that the cap may yet fuel another rise in prices.

The cap would introduce new risks for the oil market by “potentially disrupting Russian energy supplies”, Capital Economics analyst Liam Perch said in June. “This could push global energy prices up further.”

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International

Government paves the way for ‘Gordo Dan’, from the “armed arm of Milei”, to be a candidate

The head of staff of the Argentine government, Guillermo Francos, said this Friday that the far-right influencer Daniel Parisini, known as ‘Gordo Dan’ on social networks and visible face of the so-called ‘armed arm of Milei’, would be a “good candidate” for the 2025 legislative elections.

Francos’ statements to the Urbana Play radio station come in the midst of controversy over the presentation, last weekend, of the group ‘Fuerzas del Cielo’ by followers of the Argentine president, including Parasini, who described the movement as “the armed arm of Milei.”

“He’s a good candidate. He is a professional, a doctor, he has clarity, positioning him in more extreme positions makes no sense. She is a normal, balanced person, questioning the status quo, who wants Argentina to change, like many people,” Francos said.

‘Forces of Heaven’

Regarding the presentation of the ‘Forces of Heaven’, he indicated that “the impact on that act of a group of militants who decided to work together has been exaggerated” and added: “Who talked about weapons? He referred to the weapons of democracy, the use of the word through the cell phone and Twitter.”

“Today much more sophisticated mechanisms are used, networks are important for the dissemination of political ideas, but from there to interpret that this is a crisis armed with firearms,” he added.

The words of Javier Milei’s chief of staff, more than reassuring, have been interpreted as a way to pave the way for ‘Gordo Dan’ to be a candidate in 2025, according to the country’s media.

Gordo Dan repeats Javier Milei’s slogans

At the presentation of ‘Fuerzas del Cielo’, in the town of Buenos Aires de San Miguel, the speakers presented a fascist scenography, with banners with the legend “Argentina will be the lighthouse that illuminates the world” and allusions to the homeland, private property, freedom and family.

The main speaker was ‘Gordo Dan’, who attacked progressivism and repeated Milei’s slogans.

The newspaper Perfil publishes that Santiago Caputo, Milei’s advisor and strategist of the campaign that led him to victory a year ago, is the “shadowy leader” and Parasini, the visible face and “maximum reference” of the movement.

A group that, apparently, has the approval of Karina, the president’s sister and general secretary of the Presidency.
Neither Caputo nor Karina were at last Saturday’s event, but the far-right ideologue Agustín Laje, a personal friend of the president, was.

Who is Gordo Dan?

Daniel Parisini is a 32-year-old doctor who does not practice, originally from the province of Santiago del Estero (northern Argentina) and a militant since its beginnings of La Libertad Avanza (LLA), the far-right party created by Javier and Karina Milei.

Since Milei is president, the content creator walks around the Casa Rosada, attends official events and even advances dismissals of officials, despite not having a position in the Government.

He is the unofficial spokesperson to move the networks, a ‘troll’ that points to opponents. In his streaming program ‘La Misa’ he makes propaganda to the ‘libertarian’ universe, as he himself describes it, with all kinds of attacks on kirchenism, those who question the ideas of the LLA and feminism.

According to Perfil, Parasini is a partner of Carajo S.A., the company that has created the Carajo channel, from where La Misa is transmitted.
According to the company Rating Streaming, ‘Gordo Dan’ is the most influential in X and makes a big difference to the next most powerful of the networks in Argentina. It has 269,000 followers.

Last August, the Association of Argentine Television and Radio Journalists (APTRA) presented him with the Martín Fierro Digital 2024 award, in the category “the most influential in X”, and in his speech he thanked Alberto Fernández for “destroying Kirchnerism.”

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International

The Venezuelan Prosecutor’s Office investigates María Corina Machado for supporting a law approved in the US House of Law

The Venezuelan Prosecutor’s Office announced this Friday the opening of an investigation against the leader of anti-Chavismo María Corina Machado for – she assured – supporting the bill approved in the United States House of Representatives that prohibits US government institutions from hiring people or companies that have commercial ties with the Chavista Executive.

Through a statement published on Instagram, the Public Ministry (MP, Prosecutor’s Office) maintained that it decided to start this investigation against Machado to “be charged with his promotion and support for said legal defense that terrible sponsors criminal acts against the Venezuelan people.”

The crime for which the Prosecutor’s Office is investigating Machado is “treason to the homeland”

The institution maintained that the pronouncements made by Machado in favor of this bill constitute the commission of the crimes of “treason to the homeland”, conspiracy with foreign countries, as well as criminal association.

On Wednesday, Machado foresaw consequences for the government of Nicolás Maduro for this bill.

“The Bolivar law (officially Law of Prohibition of Operations and Leases with the Illegitimate Authoritarian Regime of Venezuela) sends a clear message to the regime: repression and criminal activities have consequences and no one will be able to normalize them,” Machado said through X, although the rule must be approved by the Senate for it to become effective.

Meanwhile, President Nicolás Maduro described the rule as “garbage,” while warning that those opponents who support this bill will be committing crimes, so they will have to comply with “the judicial consequences”, without specifying what they would be.

Perpetual disqualification

On Thursday, the Parliament – controlled by Chavismo – approved the discussion of an organic law that seeks to politically disqualify those who request countries, “terrorist groups or associations,” to impose economic sanctions against the Caribbean nation.

The bill was unanimously approved in the plenary, in which the president of the Chamber, the Chavista Jorge Rodríguez, insisted that the political disqualification must be perpetual.

The Bolivar bill was presented by Florida representatives Mike Waltz, Republican, and Debbie Wasserman Schultz, Democrat, who consider, in the words of the first, that the United States must “maintain the existing sanctions against the regime and seek to expand them to minimize Maduro’s resources to abuse the freedoms and prosperity of the Venezuelan people.”

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International

Trump appoints new members to his government cabinet

The president-elect of the United States, Donald Trump, announced four new nominations for his government cabinet, some of which will have to be ratified by the US Senate starting January 20, 2025.

The most controversial of them is that of Russell Thurlow Vought, one of the “architectures” of the ultra-conservative government program Project 2025, to be at the head of the Office of Management and Budget of his future Administration.

Vought, 48, was already in charge of that same portfolio during part of Trump’s first term (2017-2021).

“He did an excellent job: we removed four regulations for each new regulation, and it was a great success!” he said in a statement from his transition team.

A “cost reducer” in the cabinet

Trump recalled that Vought has spent many years working on public policies in Washington and is an “aggressive cost reducer and deregulator” who will help his government cabinet implement his “United States first” agenda in all agencies.

“He knows exactly how to dismantle the deep State (…) and will help us return self-government to the people,” added the future president about his chosen one.

An ex-NFL to Urban Planning and Housing

He also nominated in the Urban Planning and Housing portfolio of his future Administration the former American football player Scott Turner, who spent nine seasons in the National League of American Football (NFL) with the Washington Redskins, the San Diego Chargers and the Denver Broncos.

During Trump’s first term (2017-2021) Turner served as the first executive director of the White House’s revitalization and opportunity office, dedicated to the most needy communities.

According to the statement of the transition team, these areas received thanks to their work about 50 billion dollars (about 48 billion euros) in private investment.

Trump also pointed out that Turner, originally from Texas, is a pastor at the Prestonwood Baptist Church.

“He will work with me to make the United States great again for EVERY American,” said the New York tycoon, who also congratulated the appointment of the woman and the son of his chosen one.

The Work portfolio at the hands of a Latina

On the other hand, the congresswoman of Latin origin Lori Chavez-DeRemer will be his next Secretary of Labor.

“He has worked tirelessly with the business and labor sector to develop the workforce of the United States and support working men and women,” said the former president, who won the elections on November 5 against Democrat Kamala Harris.

As the congresswoman explained so far, her grandmother’s family emigrated to the United States from Mexico so that her children could live a better life and achieve their American dream.

“I am proud of my Latin roots and the achievements achieved by the Hispanic community in our great country,” she said in a Facebook post.

Chavez-DeRemer began her career in public service in 2002 at the Parks Committee of the city of Happy Valley, Oregon, and later won a position on the City Council, of which she was later president.

She was elected mayor in 2010, becoming the first Latino mayor of the municipality, and re-elected in 2014.
In 2022 she was elected to the US House of Representatives to represent the fifth district of the Oregon Congress.

A billionaire to take care of the Treasury

For the cabinet’s Treasury portfolio, Trump trusted billionaire Scott Bessent, investor and fund manager.

Bessent is the founder of the macro-investment firm Key Square Group, in the last election campaign he hosted a fundraising event for the Republican in South Carolina and Trump has described him in the past as one of the brightest minds on Wall Street.

In the event that his nomination is confirmed and validated by the Senate, Bessent awaits Bessen a crucial role in overseeing a broad portfolio that will cover international trade, taxes, financial regulation and US sanctions.

The Washington Post newspaper pointed out that people close to Trump’s transition team point out that the financier caught his attention in part because of his negative predictions about the impact of a possible Democratic victory in the elections of last November 5.

Bessent, who studied at Yale, was manager of George Soros’ fortune, but left the investor and philanthropist’s firm to set up his own fund.

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