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Ukraine Latest: EU Pressured For Lower Oil Cap, New Sanctions

President Zelenskiy called on the EU to set a lower oil price cap for Russian oil than the $65 per barrel proposed by the EU’s executive arm.

Residents walk down an unlit street following Russian missile strikes, in Kyiv, on Nov. 24.
Residents walk down an unlit street following Russian missile strikes, in Kyiv, on Nov. 24.

Ukrainian President Volodymyr Zelenskiy called on the European Union to set a lower oil price cap for Russian oil than the $65 per barrel proposed by the European Union’s executive arm.

Lithuanian President Gitanas Nauseda urged the EU to strengthen sanctions against Russia, while Ukraine’s prime minister called for new measures during a meeting with the UK foreign secretary.  

Russian President Vladimir Putin is due to meet with wives and mothers of mobilized and volunteer soldiers serving in Ukraine, as the Kremlin faces growing pressure to improve their treatment after his invasion reached the nine-month mark.

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)

Key Developments

  • Team of ‘17 and a dog’ Stands Between Moldova and Energy Chaos
  • Germany Rejects Polish Call to Send Patriot Missiles to Ukraine
  • Kremlin Faces Rising Ire From Wives, Mothers of Mobilized Troops
  • Putin Ally Kudrin To Take Yandex Role After President Approves
  • EU Extends Oil Price Cap Talks as Russia Hints View May Ease

On the Ground

Seven people died and 21 were injured in Russian shelling of the liberated southern city of Kherson on Thursday evening, regional Governor Yaroslav Yanushevych said on Telegram. Russian forces also struck Zaporizhzhia’s suburbs, according to local authorities. Over the past day Ukrainian troops repelled assaults near 11 settlements in the Donetsk and Luhansk regions in the east, Ukraine’s General Staff reported in a regular update.

(All times CET)

Grid Operator Seeks Power Restraint, Import Mechanism (11:32 a.m.)

Ukraine’s national grid operator issued a fresh call for consumers to save power and be prepared for interruptions to supply. As of Friday morning, Ukrainian power generation covered above 70% of the nation’s energy needs, Ukrenergo said on Telegram.

As it seeks more help, Ukraine is also preparing a mechanism to allow the commercial import of electricity from European neighbors, the company’s chief executive officer, Volodymyr Kudrytskyi, said on national television Thursday evening. 

Ukraine Premier Seeks Fresh Measures (11:08 a.m.)

Ukrainian Prime Minister Denys Shmyhal called for more sanctions and for the UK to declare Russia a state sponsor of terrorism. Shmyhal said he and UK Foreign Secretary James Cleverly had discussed mechanisms for confiscating frozen Russian assets and using them for Ukraine’s recovery, as well as starting a mechanism to provide insurance for war risks.

Earlier Cleverly met with Ukraine’s president during the second high-profile British government visit to Kyiv in a week.

Lithuania Urges More Russia Sanctions (10:57 a.m.)

Lithuania’s president called on the EU to continue strengthening sanctions against Russia because “the Russian economy is doing relatively well.”

“Unfortunately, it didn’t bring a painful enough result for the Russian economy so far,” Nauseda said at a conference in Kaunas. “We expected that the impact of these sanctions would be much more pronounced.”

Zelenskiy Calls for Russian Oil Cap at $30 a barrel (10 a.m.)

Zelenskiy said levels of $60 or $70 per barrel for Russian crude sounded more like concessions, as European diplomats are locked in negotiations over how strict a price cap on Russian oil should be.

“I’m very grateful to our Baltic colleagues, to Polish colleagues, their proposals are quite reasonable to set this cap at $30 per barrel,” the Ukrainian president said during a video speech to an international conference in Kaunas, Lithuania. “It’s a much better idea.”

Half of Kyiv Residents Remain Without Power (8:49 a.m.)

Half of the capital’s residents have no electricity, though central heating has already been provided to about one-third of the city’s buildings, Kyiv Mayor Vitali Klitschko said on Telegram.

All users in Kyiv should have electricity supplied to them for three hours on Friday, he said.

Power in Kharkiv Restored (8:40 a.m.)

Power in Ukraine’s second-largest city has been fully restored, Regional Governor Oleh Syniehubov said on Telegram. At the same time, nearly 100,000 residents of the Kharkiv region remain without power, he said.

Russian forces attacked areas in the region with artillery and S-300 missiles, the governor said.

Russian Oil Cap Poses Little Downside to Kremlin: FGE (7:57 a.m.)

A cap on Russian crude at $65-$70 per barrel would pose little downside to current realized prices and could even equate to a $3-$4 upside to Urals, based on where Brent is now trading, according to industry consultant FGE. A price cap in that range would do little harm to Russia’s oil export, the FGE analysts said.

Zelenskiy Says 15 Regions Face Water Supply Issues (7:15 a.m.)

Zelenskiy said in an evening address that 15 regions were experiencing problems with water supply, as the provision of power remain difficult across the nation. The Ukrainian leader met with key security officials to discuss how to maintain communications in the country.

Residents walk down an unlit street following Russian missile strikes, in Kyiv, on Nov. 24.Photographer: Jeff J Mitchell/Getty Images
Residents walk down an unlit street following Russian missile strikes, in Kyiv, on Nov. 24.Photographer: Jeff J Mitchell/Getty Images

Zelenskiy also said he was receiving regular reports about Russian forces shelling Kherson after they recently pulled out.

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