It aims to reduce Russia’s revenue and, by doing so, its ability to finance its war in Ukraine, while also limiting the war’s impact on the global energy price.
It aims to reduce Russia’s revenue and, by doing so, its ability to finance its war in Ukraine, while also limiting the war’s impact on the global energy price.
finance minister from group of seven industrial powers resolved on 2nd September A system designed to limit Russia’s income from oil salesAn idea that leaders of nations promised to explore at their summit in June.
It aims to reduce Russia’s revenue and, by doing so, its ability to finance its war in Ukraine, while also limiting the war’s impact on global energy prices.
In a statement issued by Germany, which this year presides over the G-7, the ministers said they “reaffirm our joint political intention to finalize and implement a comprehensive prohibition of services that is of Russian origin on a global scale.” Enables sea transportation of crude oil and petroleum products.
“Those services will be permitted to be provided only if oil and petroleum products are purchased at or below a price (‘price cap’) determined by a broad coalition of countries adhering to and enforcing the price cap,” he said. “
The statement did not provide any figures for a possible price range and also did not specify whether the G-7 aims to finalize the plan. It said that “we invite all countries to provide input on the design of the price range and implement this important measure.”
When they met in Germany in June, the leaders of the G-7 – the United States, Germany, France, Britain, Italy, Canada and Japan – were to explore the feasibility of measures to stop imports of Russian oil above a certain level. agreed to.
The price cap – pushed by US President Joe Biden – could work because service providers are mostly located in the EU or UK and thus within reach of restrictions. However, to be effective, it would have to include a greater number of importing countries, particularly in India, where refiners are siphoning off cheap Russian oil left behind by Western traders.
The US has already halted Russian oil imports, which were small in any case. The European Union has decided to ban 90% of Russian oil coming from the sea, but the ban does not take effect until the end of the year.