International Desk: The European Union (EU) has imposed sanctions on Russian diesel fuel and other refined oil products. Europe has also taken steps to reduce Russia's dependence on energy and reduce Moscow's income from fossil fuels. The 27-nation organization took the latest punitive action against Moscow in response to its aggression in Ukraine.
According to the AP news agency, the ban is aimed at preventing Russian diesel from going to countries other than China and India (countries that are defying Western sanctions). And if that is possible, the Russian economy will shrink and Moscow will struggle to cover the costs of the war. Apart from this, so that the global consumers do not face losses due to sudden price increase.
The new ban will create uncertainty over fuel prices. Because the 27 countries of the European Union are trying to import energy from the US, the Middle East and India instead of Russia. But it will meet only 10 percent of Europe's total demand. Moreover, the cost of importing fuel from these countries will increase compared to Russian ports.
Earlier, the G-7 countries US, Britain, Germany, France, Italy, Japan and Canada imposed a price cap on Russian oil. Where Russian diesel, jet fuel and petrol prices are set at $100 per barrel. On the other hand, the price of Russian crude oil is set at $60 per barrel. If any country or company buys Russian products at a higher price, the US allies will take action against them. The price cap came into effect from December last year.
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