Trump's envoy calls for drastic cut in oil prices to end Russia’s war in Ukraine

Keith Kellogg, the special envoy of US President Donald Trump on Ukraine and Russia, has suggested that a dramatic reduction in global oil prices to $45 per barrel could be the key to forcing Russia to the negotiating table and ending its war in Ukraine.

Kellogg argued that while assisting Ukraine militarily could help on the battlefield, it would not be enough to compel Russia to halt its aggression, Caliber.Az reports citing foreign media.

Kellogg highlighted the significant financial resources Russia gains from oil exports, which he believes are fueling the ongoing conflict. "Russia is gaining billions of dollars of money from oil sales. What if you drop that to $45 a barrel, which is basically a baseline breakeven point?" Kellogg stated, suggesting that such a price would cripple Russia’s ability to fund the war.

This proposal contrasts with the measures currently in place, under which the US and its allies have imposed a price cap on Russian oil at $60 per barrel. The price cap prohibits Western companies from providing crucial services, including transportation, insurance, and financing for oil sales above this threshold. According to the US Treasury, the price cap has been effective in reducing Kremlin revenues, though not enough to significantly impact its war efforts.

Meanwhile, Ukrainian officials have called for an even stricter price cap on Russian oil. Andrii Yermak, head of the Office of the President of Ukraine, has proposed reducing the price cap to $30 per barrel. Yermak believes that such a drastic reduction would collapse Russia’s ability to finance its war efforts, putting additional pressure on the Kremlin to negotiate.

The differing approaches reflect the ongoing debate among Western allies about the most effective measures to end Russia's war in Ukraine. While some believe military support for Ukraine should be the primary focus, others, like Kellogg, argue that economic pressure through the global oil market could ultimately force Russia to reconsider its stance.

By Vafa Guliyeva