Reuters: G7 countries plan to limit the price of Russian oil until the beginning of December

Author:
Oleksiy Yarmolenko
Date:

The "Group of Seven" countries plan to introduce a mechanism to limit the price of Russian oil by the beginning of December. In this way, they want to deprive the Kremlin of part of the profits from the sale of energy resources.

Reuters writes about this with reference to sources.

They want to introduce this mechanism by December 5. By then, the EU sanctions, which prohibit the sea import of Russian oil, will come into effect.

"The goal is to agree on the terms that have already been set by the EU. We want to make sure that the price cap mechanism comes into effect at the same time,” said one G7 country official.

Such agreements were reached by the "Group of Seven" countries at their meeting, and now they are trying to attract Asian countries to the coalition, in particular India and China, which already buy Russian oil at a significant discount.

According to the official, the G7 is already receiving signals from some Asian countries that are either ready to join the coalition or want an understanding of the price at which they plan to impose restrictions in order to have a stronger position in negotiations with the Russians. Because of this, the G7 plans to publicly announce this price.

The Group of Seven want Russian oil to be worth more than the cost of production on the world market, so that the Kremlin continues to produce it, but sell it at a price much lower than the market price. Thus, the Russian Federation will be faced with a choice — to keep part of the income by selling oil at a lower price, or to have no income at all.

  • During the G7 summit, the United States and its allies discussed ways to reduce the price of Russian oil on the world market. They want to see it at the level of $40-60 per barrel, which will seriously affect Russian revenues.
  • Against the background of the war, the USA and the EU gave up Russian fuel, but in stages. The EU allocated half a year to abandon oil, and up to eight months to abandon petroleum products. Oil deliveries via pipelines have not been sanctioned.