US: Russian oil price limit will quickly hit Putin

US Treasury Secretary Janet Yellen said that the bordering which was formally approved by Western allies on Friday came after months of hard work.

Limitation prevents countries from paying more than $60 per barrel for Russian crude oil exports from the sea.

This will take effect on December 5th or shortly after that.

Low- and medium-income countries that have been greatly affected by high energy and food prices will particularly benefit from this restriction, Yelen said.

She said it would also further limit Russian President Vladimir Putin's finances and “define the revenues he is using to finance his brutal occupation”, avoiding the disruption of global supplies that could lead to increased oil prices worldwide.

With Russia's economy already in contraction and its increasingly pale budget, the price limit will immediately lower Putin's most important source of revenues”, she said in a statement.

The price limit was set in September by the Group of G7 countries ( The United States, Canada, Great Britain, France, Germany, Italy, Japan and the EU in an effort to crack Moscow's ability to finance the war in Ukraine.

The European Union approved the price limit ʹ which needed the agreement of all member states on Friday, after convincing Poland to support it.

Poland announced its support after ensuring that the border would be kept at 5% lower than the market rate.

It was reported that the EU wanted to set the limit at $65-70, but that was rejected by Poland, as well as Lithuania and Estonia as very high.

In a joint statement, G7, the EU and Australia said the decision to set a price limit was taken to prevent Russia from taking advantage of its fight against Ukraine”.

The price limit agreement comes just days before a ban on Russian crude oil imported from the sea takes effect throughout the EU, as well as 5 December.

The price limit ) intended to affect oil exports worldwide aims to complete it.