G7 aim to have price cap on Russian oil in place before 5 December

(EurActiv, 28 Jul 2022) The Group of Seven richest economies aim to have a price-capping mechanism on Russian oil exports in place by 5 December, when European Union sanctions banning seaborne imports of Russian crude come into force, a senior G7 official said on Wednesday (27 July).

“The goal here is to align with the timing that the EU has already put in place. We want to make sure that the price cap mechanism goes into effect at the same time,” said the official, who asked not to be named.

The G7 – the United States, Canada, Japan, Germany, France, Italy and Britain – said last month they would consider setting a price cap on Russian crude to curb the oil revenue that Moscow uses to finance its invasion of Ukraine.

Since then there have been efforts to bring on board China and India, which are already buying Russian oil at a discount to the market price.

“We’ve already heard from a number of Asian countries that are interested in either joining the coalition or better understanding the price point at which the price will be set in order to strengthen their hand in their negotiations with the Russians over future contracts,” the G7 official said.

The price set by the G7 would be made public for that reason, he said.

External link

EurActiv, 28 Jul 2022: G7 aim to have price cap on Russian oil in place before 5 December