December 22, 2024
The G7 countries are considering changing the "price ceiling" for Russian oil - mass media thumbnail
Policy

The G7 countries are considering changing the “price ceiling” for Russian oil – mass media

Options under consideration range from a complete ban on Russian oil to lowering the price threshold to $40”, — write: www.radiosvoboda.org

The Group of Seven countries are exploring ways to tighten the “price ceiling” on Russian oil as they seek to better influence Moscow’s ability to finance its war against Ukraine, Bloomberg reports, citing people familiar with the matter.

According to the publication, the options under consideration range from a complete ban on Russian oil to lowering the price threshold from the current $60 to around $40.

Sources note that discussions are ongoing and there is no consensus on the next step yet.

Read also: G7 countries promise “serious costs” to Russia due to sanctions due to the war against Ukraine

Under the current “price ceiling” conditions, Western operators can insure and transport oil only when it is purchased at a price below $60.

But Moscow has begun using a so-called “shadow fleet” of tankers, often with unknown insurers or owners, to transport oil to new markets, particularly Asia. This “shadow fleet” helped Russia circumvent the restrictions, with its oil prices exceeding the upper limit for most of the year.

In response, the G7 countries imposed sanctions on dozens of vessels and companies involved in this shadow trade.

In November, the European Parliament called on the G7 countries to strengthen control over compliance with price restrictions on Russian oil, significantly reduce the upper limit of the oil price and eliminate loopholes used by Russia to sell oil and oil products at market prices.

According to journalists, in May of this year, revenues from the sale of oil to the state budget of Russia increased by almost 50% compared to last year, as oil prices increased and the country adapted to international sanctions.

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