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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

Indigenous candidate Leonidas Iza predicts a new social explosion if there is no change in Ecuador

The presidential candidate of Ecuador for the indigenous movement, Leonidas Iza, who was part of the wave of protests of 2019 and who led that of 2022, reveals himself as an “anti-system” politician in the face of “a corrupt system” that he intends to reformulate to relieve the impoverished, because he predicts a new social explosion if there is no change in the Government to meet popular demands.

Iza, 42, is the candidate of Pachakutik, the political arm of the Confederation of Indigenous Nationalities of Ecuador (Conaie) that he himself presides over, and with which he was at the forefront of the 2022 wave of protests against the government of conservative President Guillermo Lasso, where he was arrested and even labeled a “terrorist.”

“I am one of those who has never lost the ability to be outraged when governments have had policies against their own citizens,” Iza, a native of the Andean province of Cotopaxi, said in an interview with EFE.

“I am not against the private sector, I am against those who do not pay taxes and those who come to the Government only to defend their companies,” said the candidate in reference to the last two presidents (Lasso and Daniel Noboa).

“We fight for social justice, not to be violent. It is a reaction to the injustice to which we have been subjected,” he said.

For Iza, who represents the anti-extractivist left of Ecuador, the country has “a corrupt system, a health system that does not work, a deficient and unfair economic system, and public services that are not helping citizens.”

“And that’s what we want to change. We won’t be able to do it overnight, but the State can give relief to the people,” the candidate said.

To do this, it proposes to fight against tax evasion, which amounts to about 7.5 billion dollars a year, and also against corruption, which is estimated at about 3 billion dollars per year, to balance public accounts without having to follow the current credit program with the International Monetary Fund (IMF) that asks to cut public spending and raise taxes.

He also aimed to increase agricultural productivity, as well as boost tourism to go from 1 to 3 million visitors a year, and anticipated that he will regulate small and artisanal mining to avoid illegal mining but will not allow large-scale mining because it considers that it can contaminate the country’s large river basins.

Iza anticipated that he will not pay the external debt as long as there are “guaguas (children, in Kichwa) who have no education and are dying of hunger, and colleagues who are dying for lack of health.”

“We will tell the IMF and the other multilaterals that we are going to pay, but first we are going to solve the structural problem we have at the moment: education, health and minimum conditions for security,” he warned.

In that sense, Iza pointed out that “the strength of a popular reaction in the streets is accumulating” that must be resolved by whoever is elected. “Knowing my country, which has been on the streets all its life, there will be a popular reaction if (the discomfort) is not resolved in the following months,” he reiterated.

“The option that understands the people is us, and not the sectors that have always been in the Government,” said Iza, who avoided pointing out whether that reaction will reach the dimensions of the strong protests of 2019 and 2022, both led by the indigenous movement.

In this electoral campaign, Iza has left his distinctive Andean red poncho to put on the bulletproof vest in the face of the persistent wave of violence of organized crime that the country is experiencing, because he warned that the “war” that Noboa declared to the criminal gangs has not worked because its leaders are still free.

Faced with this, he promised “a hard hand for all” and recalled that “state institutions must suffocate everyone (criminals)”.

The candidate also advocated deepening international cooperation: “there must be a responsibility of all countries (producers, consumers and drug transit), especially in the region (of Latin America)”.

Asked if Ecuadorian society is ready to have an indigenous president of rural origin, Iza sees himself with popular support to face “the most reactionary sectors that have support in racism and stigmatization.”

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International

Deaths in a hotel fire in a ski resort in Turkey rise to 69

The fire that occurred this morning in a 12-story hotel in a ski resort in northwestern Turkey claimed at least 69 deaths, in addition to causing fifty injuries, according to the latest assessment of the country’s authorities.

The fire originated around 3.30 a.m. local time (0.30 GMT) in a hotel, built entirely of wood, in the Kartalkaya ski center, halfway between Istanbul and Ankara, with almost full occupancy.

The flames were extinguished after about ten hours of firefighters’ work and the authorities found the death of 66 people, in addition to rescuing 51 injured, compared to the 10 dead and 32 injured initially estimated.

The hotel, with 161 rooms, had an occupancy close to 90%, because these days are the winter school holidays in Turkey, says the Turkish newspaper Hürriyet.

The wooden construction and the location of the hotel at the foot of a ski slope, which only allows vehicle access from the front facade, made the intervention of firefighters difficult, the Turkish newspaper explained.

According to the television network NTV, about 300 people, including employees, were in the hotel at the time of the fire, the causes of which are still unknown.

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International

Hamas calls for counterattack on Israeli soldiers during their incursion in the West Bank

The Islamist organization Hamas urged the Palestinians on Tuesday to intensify and support their militiamen in the clashes against the Israeli Army during the military incursion that began today in Yenin, in the north of the occupied West Bank.

“We call on the masses of our people in the West Bank and their revolutionary youth to mobilize and intensify the clashes against the (Israeli) occupation army at all points, and to work to thwart the extensive Zionist aggression against the city of Yenin.”

“This military operation launched by the occupation in Yenin will fail, as did all its previous military operations against our brave people and their tenacious resistance,” the Palestinian group said.

Since the beginning of the operation, nicknamed by the Army “Iron Wall”, at least seven Palestinians have died in Yenin and another 35 have been injured, according to data from the Palestinian Ministry of Health.

Hamas accused the forces of the Palestinian National Authority (ANP), President Mahmoud Abbas’ ruling party in the West Bank, of having left Yenin to allow the operation of Israeli troops, instead of defending the Palestinians.

Israeli Prime Minister Benjamin Netanyahu defended on Tuesday that the last assault launched by his forces against Yenin, in the north of the occupied West Bank, seeks to “eradicate terrorism.”

“This is another step towards the objective we have set ourselves: to strengthen security in Judea and Samaria (West Bank),” according to a statement released by its Office.

“We are acting systematically and decisively against the Iranian axis wherever it sends its weapons: in Gaza, Lebanon, Syria, Yemen, Judea and Samaria (West Bank),” concludes the Israeli president’s note.

The rail comes shortly after the start of the ceasefire in Gaza, which includes a weekly exchange of hostages in the Strip for Palestinian prisoners in Israeli prisons.

Following the release of the prisoners, the Army increased its presence in this occupied territory with seven companies, claiming to strengthen its “anti-terrorist efforts.”

The images recorded in Yenin show dozens of Army vehicles accessing the local refugee camp, which has also been bombed by Israeli aviation.

The incursions and attacks of Israeli forces in Yenin, considered a bastion of Islamist-like militias, were already constant but they worsened after the Hamas attacks of October 7, 2023.

However, since mid-December it has been the security forces of the Palestinian National Authority (ANP), which governs small parts of the West Bank, that have led an offensive in this population, which until last Friday triggered armed fighting against the militiamen.

This exchange of fire has caused at least 15 people dead on both sides, including two minors.

The occupied West Bank is experiencing its greatest spiral of violence since the Second Intifada (2000-05), and in 2024 at least 491 Palestinians have died in the territory by Israeli fire, most of them militiamen from refugee camps, but also civilians, including at least 75 minors, according to EFE’s count.

So far this year, at least 24 Palestinians have already died in Israeli attacks, five of them minors.

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