The United States, together with its allies, discussed a way to lower the price of Russian oil on the world market. They want it to be at the level of $40-60, which will seriously hit Russian incomes.
Bloomberg writes about this with reference to its own sources.
During the G7 summit, the countries decided to explore options for limiting the price so that it would not hit their economies too hard. One option was to end insurance and transportation services for the transportation of Russian oil if it costs more than a certain limit.
On Monday, Russian oil traded near the $80 mark, but information about Russian oil transactions has become less public since the invasion of Ukraine. The proposed limit is based on the marginal cost of oil production in Russia, and its oil prices before the February 24 invasion. At the same time, in the US, the limit of $40 is considered too low.
In the US, there is concern that oil sanctions from the EU, which will come into force at the end of the year, could contribute to an even greater increase in oil prices.
To work, such an idea must create enough incentive for countries to participate. Oil importers will need access to lower prices and key services, such as the insurance needed to transport the goods, while the threshold should be such that Russia continues to export.