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Russia Targets Europe With a Commodity Weapon: Kazakh Crude

  • Halting flows through the CPC pipeline won’t hurt Russia
  • Europe could lose as much as a million barrels a day of crude
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US, Allies Discuss Capping Russian Oil

Russian President Vladimir Putin has found another weapon to use against European countries supporting Ukraine -- Kazakhstan’s crude -- and it will cost him almost nothing, writes Bloomberg oil strategist Julian Lee.

While a grace period ticks down before European sanctions on Russian oil kick in on Dec. 5 and the G7 group of industrialized countries considers a price cap on Moscow’s crude exports, Putin is getting his retaliation in early. A court in the town of Novorossiysk has ordered the Caspian Pipeline Consortium to halt shipments from its Black Sea export terminal for a month as punishment for violating oil spill regulations.