Translated material
G7 countries agreed to set price limits for Russian oil
Finance ministers of the G7 countries agreed on maximum prices for oil exported from Russia. this reports Bloomberg .
The initiative involves a ban on financing and insuring supplies of Russian oil if it is sold above the established ceiling price.
“The provision of such services (maritime transportation of crude oil - MZ) will be permitted only if oil and petroleum products are purchased at or below the price determined by a broad coalition of countries adhering to and implementing the price cap,” the newspaper quotes the joint ministers’ statement.
What exactly this price limit will be and how prices will be controlled is still unclear. In July, according to Bloomberg , was discussed a range of $40-60 per barrel at the then price of Urals oil of $80 per barrel.
Ministers promise to introduce a price ceiling so that it comes into force by December 5th. At the same time, European sanctions on Russian oil will come into force. “The initial price cap will be set at a level based on a range of technical data and will be decided by the entire coalition prior to implementation in each jurisdiction,” the ministers said in a statement.
Presidential press secretary Dmitry Peskov and Security Council Chairman Dmitry Medvedev assured that Russia will refuse to sell oil to countries that support the price ceiling for Russian fuel.
Economist Marcel Salikhov explained to The Bell that the initiative with cap prices on Russian oil will not work unless China and India accept the terms. Bloomberg also notes that Hungary, which previously opposed the Russian oil embargo, is unlikely to accept the price ceiling.
As notes The Bell , the idea of limiting prices for Russian oil instead of a complete embargo began to be promoted in the spring by US Treasury Secretary Janet Yelen. In her opinion, a complete ban on Russian oil supplies to Europe will increase prices for raw materials, and the Kremlin will be able to raise oil prices and thus compensate for low sales volumes. Setting a price ceiling will limit Russia's oil and gas revenues, while simultaneously slowing the growth of world oil prices.