The Biden administration is asking Europe utmost caution. In fact, Brussels is considering a total embargo on Russian gas. A decision that, however, could also have serious repercussions for the rest of the world’s exports, which would be cut off from the market by around 5 percent. But that’s not all, because crude oil and fuel prices would rise for everyone, including in the United States. This is exactly what thwarts the Democrats Joe Biden in the midterm elections for Congress in the fall.
Hence the US President’s warning to the EU. But what is at the heart of the Brussels proposal? More specifically, European leaders envisage a predetermined cap on the price that the European Union is willing to pay Russian producers for its oil. It would be clearly lower both the quotations on the international market and the discount prices at which importers trade oil from the Urals today.
At this point Wladimir Putin it could spread to countries that do not impose sanctions. And these are by no means few. So here is the role of the US: The Washington government – explains Il Corriere della Sera – would threaten to ban any state or company in the world that buys Russian oil at prices above the caps set by the EU from transactions with American companies and cut off markets. Result? The reduced prices for Putin decided in Brussels would thus become the global prices for Russia.
