G7 may tighten price restrictions on Russian oil — they want to encourage Moscow to make peace

The G7 countries are considering collectively adjusting the price cap on Russian oil to reduce Moscowʼs revenues.

This is reported by Bloomberg.

G7 allies may instruct their finance ministers to collectively review the ceiling price of crude oil, currently hovering at $60 a barrel, a move that could encourage the Kremlin to negotiate a full peace in Ukraine, Bloomberg reports.

It is not yet clear whether all the organizationʼs partners unanimously support the document. It is likely to be amended as diplomats continue negotiations. The G7 is scheduled to issue a formal statement on February 24, the third anniversary of Russiaʼs full-scale invasion of Ukraine. The allies want to meet with Volodymyr Zelensky on the same day.

In the document, the countries emphasize that they will call for a just and lasting peace in Ukraine. They believe that any negotiations should take place with the participation of Kyiv and leave room for the countryʼs Euro-Atlantic integration.

Restrictions for Russian oil

In early December 2022, the G7 members, as well as Australia and the European Union, capped the price of Russian oil at $60 per barrel. From February 5, 2023, these countries introduced a new price ceiling for Russian oil products: $100 for diesel fuel, $45 for various lubricants. To circumvent oil sanctions, Russia began forming a shadow fleet.

In July 2024, British Prime Minister Keir Starmer said that Russiaʼs shadow fleet consists of almost 600 ships and accounts for about 10% of the worldʼs "wet cargo" fleet. Some of the ships of the shadow fleet serve as Russian listening stations, while others transport weapons to Russia. With the help of the shadow fleet, the Russian Federation transports about 1.7 million barrels of oil per day, which brings large profits to the Kremlin. In 2023, Russia earned $188 billion from oil exports.

In December, Ukrainian intelligence collected files on 238 vessels and 31 captains belonging to the shadow fleet, with the help of which Russia and Iran circumvent oil sanctions and deliver sanctioned oil.

On January 8, it became known that the Chinese company Shandong Port Group banned tankers subject to the US sanctions from entering its ports in the eastern Chinese province of Shandong. The companyʼs ports are the main terminals for importing sanctioned oil.

On January 10, the United States imposed a large-scale package of sanctions against Russian oil companies. 184 Russian tankers, including those from the Russian shadow fleet, were subject to restrictions.

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