Environment

The cap on Russian oil is unlikely to change soon — despite opposing views on whether it’s working

Published

2 years ago

April 13, 2023

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G-7 nations have so far decided not to revise their cap on Russian oil.

Anton Petrus | Moment | Getty Images

The Group of Seven advanced economies is not expected to update its price cap on Russian oil in the coming weeks amid contrasting views on whether the policy is truly denting the Kremlin’s revenues.

The G-7, alongside the European Union and Australia, decided late last year to impose a cap of $60 a barrel on Russian oil in an effort to ratchet up the pressure on Moscow. As part of the agreement, they said they would review this cap in mid-March.

However, despite calls to do so from several countries in Europe, the threshold was not revised last month even as oil prices fell from the levels seen in the two months prior to mid-March. If a revision had taken place, the $60 barrel level would likely have been reduced.

“The fact that the cap is difficult to enforce (and) monitor is, in my view, also the main reason why policymakers will not be so keen to make adjustments — unless prices move a lot,” Konstantinos Venetis, senior economist at TS Lombard, told CNBC via email.

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At a summit of European leaders in late March, Estonian Prime Minister Kaja Kallas said the oil cap has been working and “we should continue with that.” She called for policymakers to lower the level of the price cap to continue to pressure the Kremlin’s finances.

However, a spokesperson for the European Council, an EU institution that brings together the 27 nations, told CNBC earlier this month: “It is stated that the functioning of the price cap mechanism will be reviewed by mid-March 2023 and every two months thereafter. Now being 5 April, this brings me to believe that the next review would happen in May.”

There are two main reasons for this. Firstly, the G-7 seems to believe the current cap is effective in reducing oil revenues for Russia. Secondly, oil producer group OPEC+ announced on April 2 surprise cuts to production, which pushed up prices and limited the argument for a downward revision to the $60 threshold.

On top of the cap on Russian oil, the EU also banned imports of refined petroleum from Russia as part of several sanctions against Moscow in response to the Kremlin’s full-scale invasion of Ukraine.

“The EU’s oil ban accompanied by the G-7 oil price cap appear to have contributed to a decline in Urals crude prices,” a spokesperson for the European Commission, the executive arm of the EU, told CNBC.

“The price of Urals crude declined from the trade range of $65-70 barrel at the end of November 2022 to well below the $60 cap in January and February 2023.”

For the cap to be revised lower next month, TS Lombard’s Venetis said “there would have to be a significant and sustained drop in global oil prices that makes the cap level look irrelevant.”

Is the price cap working?

U.S. Treasury Secretary Janet Yellen said in late February, at a meeting of the G-20, that the cap on Russian oil had “had a significant negative effect on Russia so far.”

But Jacob Kirkegaard, senior fellow at the German Marshall Fund, told CNBC that there was “widespread disagreement” about whether the cap is working or not.

While it does seem to be hurting Russia’s oil revenues, it is also diminishing the power that Western nations had in the insurance space, he added. This is because, in the wake of sanctions, Russia managed to circumvent some of the restrictions imposed by the G-7 and others by amassing a fleet of older tankers.

Ultimately, Kirkegaard said there was no explicit way to determine whether the oil cap is effective or not.

India, China snap up Russian oil

The International Energy Agency said in a report last month that the measure was having an impact on Russia’s coffers. Oil export revenues dropped to $11.6 billion in February, representing a fall of almost $3 billion from the previous month, as the EU, North America and the OECD Asia Oceania nations refused to buy Russian oil. However, other nations have increased purchases.

“Willing buyers in Asia, namely India and, to a lesser extent, China, have snapped up discounted crude oil cargoes, but increasing volumes on the water suggest the share of Russian oil in their import mix may be getting too big for comfort,” the IEA said in the same report.

“Russia accounted for around 40% and 20% of Indian and Chinese crude imports, respectively, in February. The two countries took in more than 70% of Russia’s crude exports last month,” the agency added.

Environment

ENSO launches Premium tire range designed for Tesla and other high-performance EVs

Published

1 hour ago

April 17, 2025

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EV tire specialist ENSO has launched a new premium range of ultra-high performance (UHP) tires designed for passenger electric vehicles. Soon, US drivers of EVs from Tesla and other high-performance models will be able to purchase this new tire range as ENSO significantly expands its product lineup.

ENSO is a UK-based company that hails itself as the “world’s first tire company dedicated exclusively to EVs.” Like many EV automakers its tires support, the company utilizes a direct-to-consumer sales model to help reduce a customer’s total cost of ownership while providing tires that extend EV range and reduce pollution.

In the fall of 2024, ENSO signed a strategic international partnership with Uber to provide its EV rideshare drivers with low-emission tires. As the only Certified B-Corporation in the tire industry (a highly-polluting one), ENSO uses more sustainable methods to help transform the global economy, benefiting all people and the planet they inhabit.

To carry on this mission, ENSO has unveiled a new Premium line of EV tires engineered specifically for the unique demands of all-electric driving. Better yet, these new tires are coming to the US soon.

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ENSO to launch new premium EV tire line in UK and US

According to a release from ENSO this morning, its new Premium line of EV tires are now available to customers in the UK before these go on sale to US drivers this summer. The ultra-high performance tires are A/A EU-labeled, meaning they carry the highest rating for energy efficiency and wet grip performance.

According to ENSO, its Premium EV tires also deliver the highest energy efficiency and safety in their class. They will help customers like Tesla Model 3 and Model Y owners save on TCO, tire pollution, manufacturing emissions, and reduced energy consumption while driving. Per ENSO co-founder and CEO Gunnlaugur Erlendsson:

ENSO’s mission has always been to accelerate EV adoption by making tires that enhance rather than compromise electric performance. With ENSO Premium, we’re plugging a long-standing gap in the tire market by offering EV drivers a purpose-built, affordable, premium and sustainable EV tire alternative that matches the innovation of their EV. We engineered ENSO Premium for the specific needs of EVs. from instant torque to regenerative braking. We’re delivering a tire that not only performs well but also helps EV drivers get more miles from every charge.

When designing its Premium EV tires, ENSO says it looked to match its drivers’ performance and sustainability values, specifically noting Tesla models. The tires were designed to reduce rolling resistance, extend range, and take longer to wear out than traditional tires, especially given the higher weight of EV models due to large battery packs. The result is a tire that enables fewer charging stops, lower energy consumption, and less overall tire pollution – ideal factors for the growing segment of sustainable electric mobility.

This summer, US drivers will be able to purchase the Premium line of EV tires at wholesalers, independent retailers, and directly through the company website.

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Environment

Oil giant BP braces for shareholder showdown over green strategy U-turn

Published

4 hours ago

April 17, 2025

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Oil giant BP braces for shareholder showdown over green strategy U-turn

The BP logo is displayed outside a petrol station that also offers electric vehicle recharging, on Feb. 27, 2025, in Somerset, England.

Anna Barclay | Getty Images News | Getty Images

Oil giant BP is bracing itself for a shareholder backlash at its annual general meeting (AGM) on Thursday, with a chorus of disgruntled investors planning to voice their concerns over the firm’s green strategy U-turn.

A planned resolution on the reelection of outgoing BP Chair Helge Lund has been billed as an opportunity for investors to signal discontent on climate change, corporate governance and the influence of U.S. hedge fund Elliott Management.

Britain’s beleaguered energy major, which has lagged behind more hydrocarbon-focused industry peers in recent years, has sought to resolve something of an identity crisis by launching a fundamental reset.

Seeking to rebuild investor confidence and boost near-term shareholder returns, BP in February pledged to slash renewable spending and ramp up annual expenditure on its core business of oil and gas.

The strategy reset was broadly welcomed by energy analysts, and BP CEO Murray Auchincloss has since said the pivot attracted “significant interest” in the firm’s non-core assets.

British asset manager Legal & General, a leading shareholder in BP with a roughly 1% stake, said it intends to vote against Lund’s reelection on Thursday — a position that would defy BP’s management recommendation.

Legal & General cited dissatisfaction over major revisions to the firm’s energy strategy, alongside BP’s decision not to allow a shareholder vote on the new direction.

Legal & General’s plans align with those of international asset manager Robeco, U.K. pension funds Nest and Border to Coast, as well as activist investors including Dutch group Follow This — all of which have indicated they will vote against Lund’s reelection.

Norway’s gigantic sovereign wealth fund and a number of U.S. pensions funds, however, have reportedly said they will back Lund’s reelection. Proxy advisors Institutional Shareholder Services and Glass Lewis have also recommended a vote in favor of Lund, according to Reuters.

It paves the way for a shareholder showdown at BP’s AGM, with observers closely monitoring the level of investor opposition to Lund’s reelection. Historically, votes against the chair of BP have remained under 10%.

A BP spokesperson declined to comment when contacted by CNBC.

Energy transition plans

BP’s renewed focus on oil and gas comes at a time when the London-listed energy firm is firmly in the spotlight as a potential takeover target. British rival Shell and U.S. oil giants Exxon Mobil and Chevron have all been touted as possible suitors.

“We value the significant steps BP has taken in recent years regarding its climate-related commitments and efforts, which we have supported through extensive and constructive dialogues, aimed at creating long-term value as the climate transition unfolds,” Legal & General’s investment stewardship team said on April 11.

Murray Auchincloss, chief executive officer of BP, during the “CERAWeek by S&P Global” conference in Houston, Texas, on March 11, 2025.

Bloomberg | Bloomberg | Getty Images

“However, we are deeply concerned by the recent substantive revisions made to the company’s strategy as announced at the 2025 Capital Markets Day on 26 February, coupled with the decision not to allow a shareholder vote on the newly amended climate transition strategy at the 2025 AGM,” they added.

Legal & General said BP’s announcement earlier this month that Lund will step down, likely next year, was viewed “positively,” but ongoing unease about the firm’s succession plan means it intends to vote against the AGM resolution.

Five years ago, BP became one of the first energy giants to announce plans to cut emissions to net zero “by 2050 or sooner.” As part of that push, BP pledged to slash emissions by up to 40% by 2030 and to ramp up investment in renewables projects.

The company scaled back this emissions target to 20% to 30% in February 2023, saying at the time that it needed to keep investing in oil and gas to meet global demand.

Robeco said in its rationale that BP had refused to repeat a so-called “Say on Climate” vote for its strategy revision, despite previously requesting shareholder support for the firm’s previous and “more ambitious” transition goals.

“We have unsuccessfully requested such a consistent feedback mechanism several times, including in a public letter alongside other investors with GBP 5 trillion in assets under management,” said Michiel van Esch, head of voting at Robeco.

“As a result, we have growing concerns over the company’s resilience through the energy transition, and over the consistency of its approach to climate governance, leading us to vote against the chairman and chair of the safety and sustainability committee,” he added.

Governance concerns

Elliott Management, for its part, is widely thought to be putting pressure on BP to minimize low-carbon investments and prioritize oil and gas. It emerged recently that the activist investor has built a near 5% stake in BP, making it one of the firm’s largest shareholders.

Activist shareholder Follow This, which has a long history of pushing for Big Oil to do more to tackle climate change, said the need to vote against Lund had not disappeared following news of his looming departure. The group added that investors concerned with good governance should voice their dissatisfaction.

IEA downgrades 2025 oil demand growth outlook on escalating trade tensions

“Voting against the board is the only way for shareholders to express their dissent over BP’s refusal to allow a vote on its strategy U-turn,” Mark van Baal, founder of Follow This, said in a statement.

“Now, the board has unilaterally changed course without asking shareholder support with a vote. This raises serious governance concerns. It seems BP’s leadership is afraid of its own shareholders,” he added.

Shares of BP are down nearly 10% year-to-date.

Environment

New off-road concept that ditches screens proves it: Genesis GETS luxury

Published

8 hours ago

April 17, 2025

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New off-road concept that ditches screens proves it: Genesis GETS luxury

Genesis' X Gran Equator Concept may point the way to a production vehicle

Luxury is a tough concept to pin down, but being constantly connected to work, kids, and telemarketers ain’t it. Genesis gets it, and its latest ultra-luxe off-road concept ditches screens in favor of the view out the windshield – and it’s got enough off-road chops to promise two things about those views: they’re real, and they’re spectacular!

Genesis calls its new X Gran Equator concept an elegant overlander for the modern explorer that marries on-road sophistication with off-road resilience. Whatever they call it, the 4×4’s dashboard is delightfully free from sweeping touchscreens, mood lighting, and any hint of telephonic integration.

Indeed, the interior looked so much like something from the 90s that I double and triple-checked the date on the press release. But don’t take my word for it, check it for yourself.

It’s fantastic

If you zoom in, you can see screens in the instruments. High-definition roll and pitch displays, altimeters, and probably other outdoorsy, overland-y things that the sort of people who want to do that in what would surely be a very well-appointed six-figure SUV for a similarly very well-heeled buyer.

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And that buyer? They wouldn’t miss the screen, because the screen doesn’t matter. The real show is out the front windshield – and if someone from the office calls to interrupt the vibe, you won’t even know. I know I’d pay extra for that … and I can’t imagine I’m alone.

This is how Genesis explains it:

Inside, the X Gran Equator Concept orchestrates contrast between analog architecture and digital technologies, crafting a space that feels both functional and evocative. At the center of the cabin is a four-circle display cluster on the center stack, inspired by the vintage camera dials. The interior design features contrasting colors and shapes, with a preference for geometric over organic elements. The dashboard’s linear architecture and absence of decorations focus the driver’s attention on the journey, while swiveling front seats and modular storage solutions enhance practicality.

GENESIS

Genesis didn’t provide pictures of those swiveling seats or modular storage compartments on this concept, but the X Gran Equator Concept will make its in-person debut April 18th at the Genesis booth during the 2025 New York International Auto Show.

After the show, the company will move the concept to a display at Genesis House New York in the Meatpacking District, where it will stay “in residence” until the end of July. If you’re out that way for either event, take a picture of it and tag Electrek on Instagram!