This is CBSI on the world. I'm John Baxter.

Michael Bernstom of the Hoover Institution is here.

My guide on the sanctions regime against the Russian Federation and its allies in the war in Ukraine.

We begin with a headline from the London Financial Times.

EU hits Russia with fresh sanctions aimed at banking and energy. Subhead.

Measures include ban on financial transactions with Russian lenders and use of Nord Stream

gas pipelines. Michael, this is the EU talking tough. You'd actually think they're going to back it up.

However, right now you tell me that the banks are frightened. Why so? What does this mean, Michael?

Good evening to you.

We're learning to you. And this is the 18th package of the European Union sanctions on Russia.

They hope that the United States and G7, where the United States dominate, will join them.

And one of the greatest parts of these sanctions is the introduction of the new price cap and Russian oil, which is now

what they call the dynamic cap.

At the moment it is $47.60 per barrel.

Why is that so it is 15% down from the $56 per barrel.

The $56 per barrel is the current now price of oil, Russian oil sold on the

world market. So the discount on Russia for Russian oil is between $10 and $12. The brand benchmark

oil is $68 per barrel, Russian oil sells at 56.

So from now on, for every six months, they will take the average Russian price, make the

discount of 15%, the EU, and this will be the dynamic price cap.

So if the oil prices go down from 66 to 59, 58, as projected by the United States

Energy Information Administration, then the price cap will go down from $47.60 down to something

...