Bloomberg: G7 countries are considering options to reduce the price of Russian oil

The G7 countries are considering options to lower the price cap on Russian oil. However, there is no final decision yet.

Bloomberg writes about this, citing sources.

Countries have different options. One of them is to change the mechanism, completely banning the processing of Russian oil. They are also considering the idea of lowering the price threshold from the current $60 to about $40.

According to Bloomberg sources, discussions are currently ongoing, but there is no consensus.

What preceded

In early December 2022, the G7 members, as well as Australia and the EU, imposed price caps on Russian oil, setting a maximum price of $60 per barrel. From February 5, 2023, these countries imposed a price ceiling on Russian oil products: $100 for diesel fuel, $45 for various lubricants. To circumvent oil sanctions, Russia began forming a shadow fleet.

In July, British Prime Minister Keir Starmer announced a crackdown on Russia’s so-called shadow fleet of oil tankers that help it evade sanctions. At the time, 44 European countries and the European Union, led by Britain, agreed new sanctions. The United States and Canada later joined the program.

At the same time, Prime Minister Starmerʼs Office noted that some of the shadow fleet ships function as Russian listening stations, while others transport weapons to Russia.

In July, Keir Starmer said that Russia’s shadow fleet consists of almost 600 ships and represents about 10% of the world’s “wet cargo” fleet. With its help, Russia transports about 1.7 million barrels of oil per day, which brings large profits to the Kremlin.

Russia earned $188 billion from oil exports in 2023. Since 2022, it has spent about $10 billion on creating its own shadow fleet.

The UK has now imposed sanctions on over 100 vessels for transporting Russian energy resources, including 93 oil tankers — the most of any country.

In December, Ukrainian intelligence collected files on 238 vessels and 31 captains that are part of the shadow fleet used by Russia and Iran to circumvent oil sanctions and deliver sanctioned oil.

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