Putin orders military mobilization… EU likely to pay back oil price cap

photo = REUTERS

The European Union (EU) has decided to impose an eighth sanction against Russia. It is a response to Russian President Vladimir Putin’s military mobilization order and nuclear threat. It is expected to include a price cap on Russian oil and export controls on advanced technologies. As the war extended, the Western-centric international community mobilized economic sanctions against Russia, and it is estimated that countries that have been friendly to Russia, such as China and Turkey, have begun to show a cold attitude.

○ EU G7 ‘Russian oil price cap’

According to foreign media on the 23rd, EU foreign ministers held an emergency meeting on the same day and agreed to start new sanctions against Russia. Citing three EU diplomats, Reuters said a cap on the price of Russian oil would be key. The President of the European Commission, Ursula von der Leyen, said that additional sanctions on civilian technology exports would also be included, according to CNN. The eighth sanctions on Russia will be decided at the EU Foreign Ministers’ Meeting which will be held in the middle of next month.

The eighth sanctions are interpreted as reflecting the previous agreement of the G7 to enforce the price ceiling system for Russian oil. Earlier this month, G7 finance ministers agreed to control the price of Russian crude oil to fight inflation and limit Russia’s revenue from crude oil.

It remains to be seen what the ripple effect will be as the EU has pledged to cut 90% of its crude oil imports from Russia by the end of the year. However, it is anticipated that the price cap will not be easy to implement in practice. “A decision on sanctions must be unanimous,” Bloomberg reported.

photo = AP

photo = AP

European countries are at risk of energy shortages as Russia cuts off natural gas supplies in response to EU sanctions against Russia. Even at the time of the G7 agreement, Russia said it would not supply oil to countries with price caps.

The West announced new emergency sanctions because Russia had issued a partial military mobilization order the day before that suggested a protracted war. The Russian military said more than 10,000 had volunteered for the enlistment within the first day of the mobilization order. However, foreign media such as the BBC said that Russians are fleeing in large numbers to countries bordering Russia, such as Finland and Kazakhstan, in order to avoid coercion.

○ Changed China “Ceasefire is urgent priority”

Russia’s forced annexation vote in Ukraine’s occupied territories has also been heavily criticized by the international community. Russia will hold a referendum on the incorporation of Russia for five days starting on the 23rd in four regions, including Donetsk and Luhansk in the east, and Zaporia and Kherson in the south, which were acquired from Ukraine. If the 4 votes are in favor, about 15% of Ukraine’s territory will go to Russia.

Western countries deny it as a breach of international law, calling it a fake vote whose results are likely to be affected. The Secretary General of the United Nations, Antonio Guterres, said at a meeting of the United Nations Security Council in New York on the same day that “the perpetrators of war crimes in Ukraine should be held accountable through a fair and independent judicial process.” In the General Assembly of the United Nations, there was also a ‘theory of reorganization of the Security Council’ to remove Russia from the permanent members of the United Nations Security Council, which includes the United States, Britain, France, China and Russia.

photo = AP

photo = AP

The attitudes of countries that have taken steps in favor of Russia in a neutral stance in the war have also changed significantly. According to China’s Ministry of Foreign Affairs on the 23rd, Chinese State Councilor and Foreign Minister Wang Yi said in a meeting with EU Foreign Affairs and Security Representative Rousseff Borrell during the UN General Assembly on the 21st that “China does not stand aside or pour oil on fire, but play his role in his own way. “The urgent task is a ceasefire,” he said. “It is something that China does not want to see if the situation in Ukraine is prolonged and the negative ripple effect becomes serious,” he said.

“China may still think an alliance with Russia is necessary to keep the US in check, but this statement from the Chinese foreign ministry has little support for Putin,” the Guardian said.

Turkiye, who was a mediator between Russia and the West, also issued a statement on the same day, criticizing that “the international community cannot recognize an illegal act (unification vote),” and “it will make it difficult to restore the diplomatic. process and increasing instability.” he did

Reuters reported that Indian oil companies began cutting imports of Russian oil and coal this month.

By Noh Yoo-jeong, staff reporter yjroh@hankyung.com

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