Leaders of the Group of Seven (G7) most developed industrialized nations have agreed to consider imposing ceilings on Russian oil and gas import prices in a bid to limit Moscow’s ability to finance its invasion of Ukraine, G7 officials said today.
The European Union will explore with international partners ways to reduce energy prices, including whether it is possible to impose temporary ceilings on import prices, according to an excerpt from a final G7 statement seen by Reuters. Officials said this affected both oil and gas.
The G7 was discussing imposing a price limit on Russian energy to prevent Moscow from taking advantage of its invasion of Ukraine, which has pushed up oil and gas prices.
Revenue from Russian oil exports rose in May, although sanctions have reduced the volume of its exports, the International Energy Agency (IEA) said in its monthly report for June.
The United States was the first to call for a mechanism that would set limits on the price other Russian countries would pay for Russian oil.
The idea is to link financial services, insurance and maritime oil transportation with a maximum price on Russian oil prices. So, if a carrier or an importer wants these services, they should commit to selling Russian oil at a set maximum price.
Italy, whose economy is based on Russian energy, has been pushing to extend this price limit to gas.
SOURCE: AMPE
Source: Capital
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