It is “Global Village Today” which provides important news from various countries of the world.
Host) What news do you have today?
Journalist) Yes. The price cap for Russian crude oil, led by the G7 and the European Union, went into effect on the 5th. Russia has threatened to stop selling crude oil to countries joining the move. Iran is discussing the possibility of abolishing the recently controversial ‘wind control police’.
Host) Global Village Today, this is the first news. Is the ceiling on the price of Russian crude oil in effect?
Journalist) Yes. The Russian price cap system for crude oil came into effect on the 5th, joined by seven large countries (G7), Australia and the European Union (EU). As part of an effort to limit Russia’s financing of the war, the G7 and the EU have pushed for price caps on Russian seaborne crude. Russia is the world’s second largest exporter of crude oil.
Moderator) How much was the upper limit set?
Journalist) Yes. It’s 60 dollars a barrel. As a result, these countries only have to trade below $60 a barrel. Also, when Russian crude is transported to third countries, G7 and EU tankers, insurance companies and credit institutions can only be used if the price is below $60 a barrel.
Moderator) There were a lot of difficulties before the price cap system was introduced, right?
Journalist) Yes. The purpose of this measure is to limit the revenue that Russia can get from high oil prices and to stop the financing of the war, which has been discussed since the Russian invasion of Ukraine. However, it was difficult to reach an agreement due to differences of opinion between EU member states.
Moderator) The backlash from Poland is said to have been particularly strong, right?
Journalist) Yes. Poland insisted that the cap be lowered to $20, close to the original price, to deal a blow to Russia. Notably, Poland finally agreed on the 2nd after lobbying not to sign the deal unless the price ceiling was further lowered to the end.
Moderator) How did the G7 and Australia come to participate?
Reporter) The G7 and Australia did not participate directly in the negotiation process. I was able to comply with the EU decision. On the same day (2) that the agreement with the EU came out, the G7 and Australia also announced that they would agree to introduce a maximum price of $60 per barrel.
Moderator) So if you set the price once, will it continue to apply in the future?
Journalist) It’s not like that. EU member states have agreed to review the cap by observing trends in market transactions every two months starting in January next year. And it is known that the maximum price will be set at least 5% lower than the average price of crude oil calculated by the International Energy Agency (IEA).
Moderator) After twists and turns, the crude oil price cap system has been introduced, what effect can we expect?
Journalist) I’m not sure at this point. Some point out that the cost of producing Russian crude is so low that the $60 limit will not be harsh. Some experts estimate the cost of Russian oil production at $20 a barrel. Also, in terms of vessels, as of last October, industry analysis suggests that Russia can secure enough tankers to ship oil that exceeds the cap.
Host) How did Russia react to this move by the international community?
Journalist) Even at the cost of reducing production, you have decided not to sell oil and petroleum products to countries that have introduced price ceilings. Russian Deputy Prime Minister Aleksandr Novak warned on the 4th, protesting against price ceilings as an act of interference that goes against the principles of free trade.
Moderator) Even if you suffer a drop in imports, do you say you will respond by cutting production?
Journalist) Yes. Deputy Prime Minister Novak also said that he was working on a device that would prevent the use of the price cap altogether, regardless of the cap amount. Reuters news agency, citing sources, said Russia was pushing for a decree banning transactions with countries and companies that introduce price caps for oil and petroleum products.
Host) Will we see the reaction of the Ukrainian government?
Journalist) The Ukrainian government replied that it was insufficient. Ukrainian President Volodymyr Zelensky has welcomed the EU’s agreement on the introduction of a price cap. However, the ceiling agreed by the EU is not enough to hurt the Russian economy and should be lowered. President Zelensky later criticized the international community for capping that level as a sign of weakness.
Moderator) Was there a meeting of the major oil producing countries in the midst of all this?
Journalist) Yes. On the 4th the usual meeting of OPEC+ was held, a consultative body between the Organization of the Petroleum Exporting Countries (OPEC) and the main oil producing countries such as Russia. The meeting attracted particular attention as it took place following the agreement on maximum limits on the price of crude oil by the main Western countries. OPEC+ has announced that it will maintain its policy of cutting production by 2 million barrels per day. The US wants to increase production to stabilize international oil prices, but OPEC+ is able to continue its policy of cutting production until the end of next year.
Host) Global Village Today, this time it’s news from Iran. Are you talking about ending the controversial police organization in Iran?
Journalist) Yes. It is known that the Iranian government recently abolished the so-called ‘wind police’, which has sparked protests that have been going on for almost three months. On the 3rd, the Iranian anti-government news agency ‘Isna’ reported that the customs police had been abolished, citing the words of the Iranian attorney general.
Moderator) Let’s listen in more detail to the remarks of the Prosecutor General of Iran?
Journalist) Yes. ISNA news agency reported that Iranian Attorney General Mohammad Zafar Montazeri attended a religious meeting on the 3rd and said that the “map patrol”, or customs police, has nothing to do with the Iranian judiciary. At the same time, without further explanation, it was reported that Attorney General Montageri said that the customs police had been abolished.
Host) When was the customs police established?
Reporter) It was established in 2005. The customs police have been charged with cracking down on Islamic customs, including whether Muslim women wear the hijab. He has been criticized for being violent and coercive in a series of crackdowns, arrests and detentions.
Moderator) By the way, hasn’t there been any official announcement yet from the Iranian government?
Journalist) Yes. Iranian state media have not published any related reports yet. However, Iranian National Assembly member Nezamodin Mousavi said in an interview with ISNA news agency on the 4th that the Iranian government is paying attention to the practical needs of the people. The Associated Press interpreted Mousavi’s remarks following Attorney General Montazeri’s the previous day as hinting at a forward-looking move by the Iranian government.
Moderator) Didn’t the Iranian president also make conciliatory remarks recently?
Journalist) Yes. On the same day (3), President Ebrahim Raish hinted at the possibility of relaxing the law, stating that the constitution states that Iran was built on the basis of Islam, but that there is also a way to flexibly implement the constitution. Iranian women are now required to wear the hijab in public.
Moderator) How many months have the protests been going on in Iran?
Journalist) Yes. In mid-September, Mahsa Amini, a 20-year-old Kurdish woman living in the northeastern region of Iran, was arrested by the police for not wearing the hijab properly during a visit to Tehran, the capital. Three days later, she suddenly began a mysterious death.
Moderator) Wasn’t the story of Amini’s autograph different between the family and the authorities?
Journalist) Yes. Iranian authorities said the cause of death was a heart attack, but Amini’s family insisted that he was in good health and he was killed by the police. At the same time, large-scale protests began to spread across Iran, criticizing the exact cause of death, opposition to wearing the hijab, and criticism of excessive treatment by the authorities. Solidarity demonstrations continued in the United States, the United Kingdom and Italy.
Moderator) As time has gone on, the protests have shown a tendency to escalate, right?
Journalist) Yes. The protests intensified when the Iranian authorities began to crack them down. According to the Iranian news agency for human rights activists (HRANA), 18,200 people were arrested among the protesters by 2. About 470 people died in the crackdown by the authorities. On the other hand, it is known that there have also been deaths among Iranian government forces in the process of cracking down on the protests. Iranian Deputy Foreign Minister Ali Bagherikani recently said that around 50 Iranian officers have been killed and hundreds injured.
Moderator) Yes. Global Village Today, I will listen to this.
