The "Big Seven" countries (USA, Canada, Great Britain, Germany, France, Italy and Japan) agreed to put a cap on the price of oil and oil products from Russia in the winter, the website of the British government reported.
“We confirm our joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally – the provision of such services would only be allowed if the oil and petroleum products are purchased at or below a price (“the price cap”) determined by the broad coalition of countries”, the government said in a statement.
The price cap is said to be specifically designed to reduce Russian revenues and Russiaʼs ability to finance the war, while limiting the impact of Russiaʼs war on global energy prices, especially for low- and middle-income countries.
The G7 invites all countries to submit proposals for the development of a "price ceiling". "We seek to establish a broad coalition in order to maximise effectiveness and urge all countries that still seek to import Russian oil and petroleum products to commit to doing so only at prices at or below the price cap," the British statement said.
Officials added that the initial price will be set at a level based on a number of technical inputs. The effectiveness and impact of the price cap is promised to be carefully monitored, and the price itself to be revised as necessary.
The government has not given a date when the "price cap" will come into effect, but according to the Financial Times, price caps for oil will come into effect on December 5, and for petroleum products on February 5, 2023.