G7∙EU begins implementing Russian crude oil price cap…”Iran, eliminating customs police”

‘Global Village Today’ presents big news from different countries around the world.

Host) What news do you have today?

Reporter) Yes. A Russian crude oil price cap, led by the G7 and the European Union, came into effect on the 5th. Russia has threatened to stop selling crude oil to countries that join the movement. In Iran, the possibility of abolishing the ‘wind control police’, which has been controversial recently, is being discussed.

Host) Global Village Today, here is the first news. Is the Russian crude oil price cap in effect?

Reporter) Yes. From the 5th, the Russian crude oil price cap system, along with seven major countries (G7), Australia, and the European Union (EU), came into force. As part of an effort to limit Russia’s financing of the war, the G7 and the EU have pushed for the introduction of price caps on Russian crude oil transported by sea. Russia is the world’s second largest exporter of crude oil.

Moderator) How much was the upper limit set?

Reporter) Yes. That’s $60 a barrel. As a result, these countries must trade below $60 per barrel only. Also, when Russian crude is transported to third countries, G7 and EU tankers, insurance companies and credit institutions can only be used if the price is less than $ 60 per barrel.

Moderator) There were quite a few difficulties before the introduction of the price cap system, right?

Reporter) Yes. The purpose of this measure is to limit the revenue Russia can get from high oil prices and stop the war funding, which has been discussed since the Russian invasion of Ukraine. However, it was difficult to reach an agreement due to differences of opinion among EU member states.

Moderator) The reaction from Poland is said to be particularly great, right?

Reporter) Yes. Poland demanded that the ceiling be lowered to $20, close to the original price, in order to deal a real blow to Russia. In particular, Poland finally agreed on the 2nd after being pressured not to sign the agreement unless the price ceiling was lowered further until the end.

Moderator) How did the G7 and Australia get involved?

Reporter) The G7 and Australia did not participate directly in the negotiation process. I was in a position to abide by the EU decision. On the same day (2nd) that the EU deal came out, the G7 and Australia also announced that they would agree to introduce a price cap of $60 per barrel.

Moderator) Then, if you set the price once, will it continue to be applied in the future?

Reporter) That’s not it. EU Member States decided to review the upper limit by looking at market transaction trends every two months from January next year. And it is known that the ceiling price will be set at least 5% lower than the average price of crude oil compiled by the International Energy Agency (IEA).

Moderator) After twists and turns, the crude oil price cap system was introduced How much impact can we expect?

Reporter) Not sure at the moment. Some point out that the cost of producing Russian crude oil is so low that the 60-dollar limit will not be serious. Some experts estimate the cost of Russian oil production at $20 per barrel. Also, in terms of shipping, as of last October, industry analysis suggests that Russia can secure enough tankers to transport oil in excess of the upper limit.

Host) How did Russia respond to this move by the international community?

Reporter) Even if it means reducing production, he has decided not to sell oil and oil-related products to countries that have introduced price caps. Russian Deputy Prime Minister Aleksandr Novak warned on the 4th, protesting against price ceilings as an act of intervention that goes against the principles of free trade.

Moderator) Even if you suffer a drop in imports, are you saying you will respond by cutting production?

Reporter) Yes. Deputy Prime Minister Novak also said that he is working on a device that would prevent the use of the price ceiling at all, regardless of the size of the ceiling. Reuters news agency, citing sources, said that Russia is pushing for a decree to ban transactions with countries and companies that introduce price caps for oil and petroleum products.

Host) Will we see the reaction of the Ukrainian government?

Reporter) The Ukrainian government responded that it was insufficient. Ukrainian President Volodymyr Zelensky welcomed the EU’s agreement to introduce a price ceiling. However, the ceiling agreed by the EU is not enough to harm the Russian economy and should be lowered. President Zelensky then criticized the international community for setting a ceiling at that level as a sign of weakness.

Moderator) There was a meeting of the main oil producing countries in the midst of this?

Reporter) Yes. The regular meeting of OPEC +, a consultative body between the Organization of the Petroleum Exporting Countries (OPEC) and major oil producing countries such as Russia, was held on the 4th. The meeting drew particular attention as it was held following an agreement on crude oil price caps by major Western countries. OPEC+ announced that it would maintain its policy of cutting production by 2 million barrels per day. The US wants to increase production to stabilize international oil prices, but OPEC+ is in a position to continue its policy of cutting production until the end of next year.

Some young women walk the streets without the mandatory hijab in Iran’s capital, Tehran, on November 14. (File photo)

Presenter) Global Village Today, this time it’s news from Iran. Are you talking about ending the controversial police establishment in Iran?

Reporter) Yes. It is known that the Iranian government has recently abolished the so-called ‘wind police’, which sparked protests that have been going on for almost three months. On the 3rd, Iran’s anti-government news agency ISNA reported that the customs enforcement force had been disbanded, citing the words of Iran’s Attorney General.

Moderator) Shall we listen to the comments of the Prosecutor General of Iran in more detail?

Reporter) Yes. ISNA news agency reported that Iran’s Prosecutor General, Mohammad Zafar Montazeri, attended a religious meeting on the 3rd and said that the ‘map patrol’, or customs police, had nothing to do with Iran’s judiciary. At the same time, without further explanation, it was reported that the Attorney General Montageri said that the customs police had been abolished.

Host) When was the customs police established?

Reporter) It was established in 2005. The customs enforcement force has been responsible for tackling Islamic customs, including whether Muslim women wear the ‘hijab’. He has been criticized for being violent and coercive in a series of confrontations, arrests and imprisonments.

Moderator) By the way, there has been no official announcement from the Iranian government yet?

Reporter) Yes. Iranian state media have yet to publish related reports. However, the member of the National Assembly of Iran, Nezamodin Mousavi, said in an interview with ISNA news agency on the 4th that the Iranian government is paying attention to the practical needs of the people. The Associated Press interpreted Mousavi’s comments following those of Attorney General Montazeri the previous day as suggesting a progressive move by the Iranian government.

Moderator) Didn’t the president of Iran also make conciliatory comments recently?

Reporter) Yes. On the same day (3rd), President Ebrahim Raish suggested the possibility of relaxing the law, saying that it was stated in the constitution that Iran was built on the basis of Islam, but that there is also a way to act’ r composition is flexible. . Iranian women are now required to wear hijab in public.

Moderator) How many months have protests been going on in Iran now?

Reporter) Yes. In mid-September, Mahsa Amini, a Kurdish woman in her 20s who lives in the northeastern region of Iran, was arrested by the police for not wearing a hijab properly while visiting Tehran, the capital. Three days later, a mysterious death began suddenly.

Moderator) Wasn’t the story different between the family and the authorities about Amini’s signature?

Reporter) Yes. Iranian authorities said the cause of death was a heart attack, but Amini’s family insisted he was in good health and had been killed by police. At the same time, large-scale protests began to spread throughout Iran, criticizing the exact cause of death, opposition to wearing the hijab, and criticism of the excessive treatment of the authorities. Solidarity demonstrations continued in the USA, the UK and Italy.

Moderator) As time goes by, the protests have shown a tendency to intensify, right?

Reporter) Yes. Protests intensified as the Iranian authorities began to crack down on them. According to Iran’s ‘Human Rights Activist News Agency (HRANA)’, around 18,200 protesters were detained until the 2nd. About 470 people died in the crackdown by the authorities. In the process of suppressing the protests, Iranian government forces are also known to have died. Recently Iran’s Deputy Foreign Minister, Ali Bagherikani, said that around 50 Iranian officials were killed and hundreds were injured.

Moderator) Yes. Global Village Today, I will listen to this.

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