Amid Western pressure on oil, Russia conducts strikes
Kyiv says it shot down more than 60 Russian missiles as Moldova police said it found parts of a missile near the Ukraine border
KYIV/FRANKFURT: Ukraine said Russia had destroyed homes in the southeast and knocked out power in many places with a new round of missile attacks as the West imposed a price cap on Russian seaborne oil to try to limit Moscow’s ability to finance its invasion.
Ukraine’s air force said Monday it shot down more than 60 of about 70 missiles that Russia fired on in its latest barrage against Ukraine.
It was the latest onslaught as part of Moscow’s new, stepped-up campaign that has largely targeted Ukrainian infrastructure and disrupted supplies of power, water and heat in the country as winter looms.
“In total, more than 60 invaders’ missiles were shot down!” the statement said.
The new barrage followed reported explosions at two air bases inside Russia overnight, both hundreds of miles from Ukraine. One of them, the Engels base in Saratov region, houses bomber planes that are part of Russia’s strategic nuclear forces.
Three people were killed when a fuel tanker exploded at the air base in Ryazan, 185km southeast of Moscow, state news agency RIA said.
The Engels base, about 730km south of Moscow, is one of two strategic bomber bases housing Russia’s air-delivered nuclear capability, comprising 60-70 planes.
Moldovan police on Monday found fragments of a missile that came down in a region of northern Moldova near the border with Ukraine, state information portal Prima Sursa quoted the police as saying.
Moldovan authorities did not immediately comment publicly on the incident.
Russian oil price cap, EU ban aim to limit finances
Major Western measures to limit Russia’s oil profits over the war in Ukraine took effect on Monday, bringing with them uncertainty about how much crude could be lost to the world and whether they will unleash the hoped-for hit to a Russian economy that has held up better than many expected under sanctions.
In the most far-reaching efforts so far to target one of Moscow’s main sources of income, the European Union is banning most Russian oil and the Group of Seven democracies has imposed a price cap of $60 per barrel on Russian exports to other countries.
The impact of both measures, however, may be blunted because Russia has so far been able re-route much of its European seaborne shipments to China, India and Turkey, although at steep discounts, and the price cap is near what Russian oil already cost.
As it stands, Russia will likely have enough money to not only fund its military but support key industries and social programs, said Chris Weafer, CEO and Russian economy analyst at consulting firm Macro-Advisory.
“At this price level, that outlook really doesn’t change much. But what is key is how much volume Russia would be able to sell,” he said. “
Oil prices fluctuate amid Fed interest rate worries
Oil prices pared gains on Monday, following U.S. stock markets lower, after U.S. service sector data raised worries that the Federal Reserve could continue its aggressive policy tightening path.
Brent crude futures were down 56 cents at $85.01 a barrel by 9:53pm IST. West Texas Intermediate crude (WTI) fell 77 cents to $79.21. Earlier, WTI rose as much as 3.4% after China announced further easing of Covid restrictions and the EU, G7 restrictions came into effect.