FAST FIVE: The Ridiculous Reality Of The Russian Oil Price Cap Debate In One Picture
Enforcing the Cap The kicker is amusing: “EU diplomats said most EU countries, with G7 members France and Germany taking the lead, were supportive of the price cap, worried only about the ability to enforce it.” This brings us back to how any economist can possibly think such a cap might work.
Finally, the jury is still out on whether India and China, the biggest new buyers of Russian oil, are prepared to join the price cap coalition.
Aim of the Plan The aim of the plan is to not eat Russian cake while eating Russian cake.
China, India and other countries will not go along.
Countries in the EU have an incentive to cheat. One of Two Things The cap will fail and do nothing.