“The Group of Seven (G7) countries are considering ways to tighten the price cap on Russian oil to better limit Moscow’s ability to finance the war against Ukraine.”, — write: epravda.com.ua
The Group of Seven (G7) countries are considering ways to tighten the price cap on Russian oil to better limit Moscow’s ability to finance the war against Ukraine. This is reported by the Bloomberg agency. Among the possible options is a complete ban on the processing of Russian oil or a reduction in the price limit from the current $60 to about $40. However, a decision has not yet been made and discussions are ongoing. According to the current rules, Western companies can insure and transport oil only if it is purchased at a price below the established threshold. Meanwhile, the US and EU have embargoed most imports since the start of a full-scale Russian invasion.Advertisement: In response, Russia is using a shadow fleet of tankers, often with unknown insurers or owners, to deliver oil to new markets, particularly in Asia. This fleet allowed Moscow to circumvent the restrictions, with its oil sold above the limit for most of the year. In response, the G7 countries imposed sanctions against dozens of ships and companies involved in these shadowy operations. Some northern European countries have also increased insurance checks on Russian tankers passing through their waters. The price cap was originally designed to reduce Russia’s revenue from oil sales while avoiding a sharp rise in world prices. However, given the forecasts of an oil surplus in 2025, Ukraine’s allies are ready for more decisive action.Advertisement: At the same time, the G7 countries are trying to balance the possible economic consequences of the new measures with factors such as maritime security. Some believe that trade will benefit if Moscow uses the services of more reliable operators. We will remind: on December 5, 2022, the price limit of 60 US dollars per barrel and the ban on the import of Russian crude oil came into force. As the president of the European Commission, Ursula von der Leyen, predicted, “this decision will hit Russia’s income even harder and reduce its ability to wage war in Ukraine.”