US says price caps on Russia's oil are cutting revenue nearly in half and weakening its economy
Washington (AP): A top Treasury Department official said Thursday that the cap on the price of Russia's oil is severely curtailing its greatest source of revenue as it wages war in Ukraine.
When the United States and other economic powers in the Group of Seven, along with the European Union and Australia, last year announced an ambitious plan to cap the price of Russian oil, U.S. officials said it would deliver a crippling blow to Russia's economy.
"In just six months, the price cap has contributed to a significant decline in Russian revenue at a key juncture in the war," Deputy Treasury Secretary Wally Adeyemo said in remarks Thursday at the Center for a New American Security, pointing to a nearly 50% drop in Russian oil revenues compared with a year prior.
The price cap was rolled out to equal parts skepticism and hopefulness that the policy would stave off Russian President Vladimir Putin's invasion of Ukraine.
In addition to the price cap, the allied nations have hit Russia with thousands of sanctions over the course of the nearly 16 months of war. The sanctions are aimed at bank and financial transactions, technology imports, manufacturing and Russians with government connections.
Adeyemo said most recently the Kremlin's new tax on oil companies, designed to make up for the lack of revenues, is evidence of the cap's success.
"This change will constrain Russia's oil companies going forward, leaving them with fewer funds to invest in exploration and production and over time diminishing the productive capacity of Russia's oil sector," he said. "There is clear evidence of its success."
Lauri Myllyvirta, a Finland-based analyst at the Centre for Research on Energy and Clean Air, said while the price cap has made an impact on Russia's economy, the EU's import ban has had more effect in reducing Russian oil revenues.
The EU last year announced a ban on the importation of Russian oil and other products from Russian refineries. And in February, Europe imposed a ban on Russian diesel fuel.
"The combination of the EU's oil import ban and the price cap did have an impact," Myllyvirta said, "but the EU import ban has been the more impactful measure."
Myllyvirta also said the cap is too high for to have a more meaningful impact on Russian oil revenues. The price cap on Russian oil has remained at
60 per barrel.
In response to the punitive measures, Russia has cut its oil production, and announced this month that it would extend the cuts by 500,000 barrels per day until the end of December 2024.
"This is a precautionary measure taken in coordination with the countries participating in the OPEC+ agreement, which previously announced voluntary oil cuts in April," Alexander Novak, Russia's deputy prime minister, wrote on the government's website.
The voluntary cuts may also be due in part to waning demand.
The International Energy Agency this week issued its five-year forecast on oil demand, which suggests that fossil fuels' dominance over drivers is starting to wane.
It's part of a larger trend in which countries' efforts to address climate change by moving to renewable energy sources will begin to lessen demand, which in turn could lessen the economic strength of countries like Russia.
The forecast indicates that demand for gasoline will peak in 2023, while demand for overall transport fuels would top out in 2026. The IEA specifies that this is "the result of a pivot towards lower-emission sources triggered by the global energy crisis," in addition to better efficiency and the growth in sales of electric vehicles.
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BJP accuses CM Siddaramaiah of 'misleading' public on govt job figures
Bengaluru (PTI): Karnataka BJP president B Y Vijayendra on Wednesday lashed out at Chief Minister Siddaramaiah, accusing him of "misleading" the public on government recruitment figures and "failing" to address the concerns of unemployed youth in the state.
In a detailed post on his X handle, Vijayendra alleged that the Congress-led government was attempting to deflect accountability by blaming the previous BJP administration instead of initiating concrete steps to fill vacant posts.
“Chief Minister, please refrain from misleading the people. Do not attempt to shift the blame for all your shortcomings onto the BJP and evade responsibility. Your administration has earned a reputation for arrogance, corruption and mismanagement,” Vijayendra said, adding that students and youth were not naïve enough to be swayed by what he termed as "exaggerated claims".
Vijayendra's response came following Siddaramaiah's statement on Tuesday blaming BJP for the huge backlog of government job vacancies.
The CM had said that when Congress assumed office in 2023, over 2.64 lakh government posts were vacant.
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The backlog resulted from prolonged inaction under the previous BJP government, which failed to initiate timely recruitment or create a structured roadmap, he said.
As thousands of government job aspirants staged a massive protests in Dharwad on Tuesday demanding filling the vacant posts immediately, Siddaramaiah accused BJP leaders of "misleading students for political gains" and said recruitment irregularities and alleged corruption between 2019 and 2023 had eroded trust in the system, leading to the current crisis.
Questioning the government’s public statements on employment generation, Vijayendra referred to figures tabled in the Legislative Assembly.
“According to the official figures presented by your own government in the Legislative Assembly, only 8,157 government recruitments have been completed during your three years in office. Yet publicly claiming that 40,000 posts have been filled raises serious concerns. Does this not amount to misleading the unemployed youth of the state?” the Shikaripura MLA asked.
The BJP leader also raised the issue of large-scale vacancies in government departments, claiming that lakhs of posts remained unfilled even after the Congress came to power.
According to him, the state was struggling financially and questioned the delay in initiating fresh recruitment drives despite what he described as legal clarity on proceeding under the existing reservation framework.
Vijayendra further criticised the government for prioritising the accommodation of party workers and disgruntled MLAs in state-run corporations with ministerial rank and perks, while unemployed youth continued to wait for job opportunities.
“At the very least, please stop making claims that do not align with facts. Youth unrest in the state is mounting. Before matters escalate further, act with sincerity — or consider stepping down and seeking the people’s forgiveness,” the BJP state chief said.
Noting that frustration among students and job aspirants was intensifying, Vijayendra urged the CM to immediately expedite pending recruitment processes and ensure transparency in appointments.
He warned that the government would be held accountable for any fallout arising out of growing youth discontent.
