By Adrian Patrusca
(Opinion) For two and a half years, we have watched in amazement as the West commits suicide through the cut-throat policies of its leaders.
The question from the beginning has been: Stupidity or intention?
Now we have the answer.
The measure is scheduled to take effect on Dec. 5. In the middle of winter. When it is already cold and dark in the global North.
The stated aim of the G7 decision is to prevent Moscow, a significant oil exporter, from profiting from the war in Ukraine and the energy crisis triggered by Western sanctions against Russia.
U.S. Treasury Secretary Janet Yellen explained how this works:
(Theory) The cap would allow Russian oil to continue to “flow” into international markets, keeping prices low. At the same time, however, Russia’s revenue from oil sales would decline, weakening its economy and ability to wage war in Ukraine.
What are the chances that this G7 plan will be implemented?
Bloomberg energy analyst Javier Blas summed up the situation:
My friends and I have agreed to impose a price cap on our local pub’s beer. Mind we actually do not plan to drink any beer there. The pub’s owner says he won’t sell beer to anyone observing the cap, so other patrons, who drink a lot there, say they aren’t joining the cap. Success
Russia has done just that. It has announced that it will stop selling oil to G7 countries and other countries that comply with the cap.
My friends and I have agreed to impose a price cap on our local pub's beer. Mind we actually do not plan to drink any beer there. The pub's owner says he won't sell beer to anyone observing the cap, so other patrons, who drink a lot there, say they aren't joining the cap. Success
— Javier Blas (@JavierBlas) September 2, 2022
It did precisely the same thing when it announced it would sell gas only in rubles. And the maneuver was a success.
Russia’s revenues from gas exports have skyrocketed, and the ruble has been named “Currency of the Year.”
And the West is finally importing Russian gas via China.
Kremlin spokesman Dmitry Peskov announced this immediately after the G7 decision:
Companies that impose a price cap will no longer be among our beneficiaries. We will no longer cooperate with them on principles that counter market freedom.
Under these circumstances, it is evident that the cap can only work if the number of countries and companies supporting it is large enough to prevent Russia from selling oil at the price it wants.
Neither China nor India, significant importers of oil and other energy commodities and allies of Russia in the BRICS, are part of the G7.
On the other hand, G7 members, the United States, and the United Kingdom imposed a ban on oil imports from Russia long before, two weeks after the invasion of Ukraine.
And a third G7 country, Japan, has announced that Russian oil imported through the Sakhalin-2 pipeline will be exempt from the cap.
Another condition for the G7 measure to work was that there had to be enough oil on the international market to prevent prices from rising, thus benefiting Putin.
In mid-July, Joe Biden visited Saudi Arabia and asked Crown Prince Mohammed bin Salman to use his influence to persuade OPEC countries to increase production.
In response, OPEC announced on Sept. 5 that it would cut production by 100,000 barrels per day.
The U.S. press called the move a “humiliation for Biden and the European Union.”
As a result, oil prices will go up, not down.
When the G7 discussed the possibility of a cap in June, experts warned that the measure would increase prices.
From less than US$90 per barrel, as is the case now, to US$200 per barrel. An increase of more than 100%.
This is a price that Biden, Macron, Scholz, or Von der Leyen will not pay.
The people of the West will bear the cost.
Imagine what the gas stations will show in winter!
Another nuisance is breathing down our necks. In the middle of an energy crisis. In the middle of a winter nightmare.
Russia’s first reaction to Friday’s G7 announcement was to cut off European gas supplies via Nord Stream 1.
It’s that time again: As with the sanctions, the West is pretending to intimidate Putin.
But this time, too, Putin emerges stronger. He will sell his oil at twice the price.
And the West is again putting itself under a new guillotine: it manages to anger its citizens even more.
At first, you may have thought it was a fool’s errand. Now it is obvious: it is intentional.
The demons of the planet are engaged in the controlled destruction of the West, creating the necessary wasteland for reconstruction.
“Built Back Better” is also called “The Great Reset.”
It will bring hell to earth.
Join us on Telegram: t.me/theriotimes