G7: Mandate for the Ministry of Foreign Affairs to consider a price ceiling for Russian gas

The leaders of the Group of Seven (G7) are going to order their ministers to investigate the application of a price ceiling on Russian gas, Bloomberg reports, citing people familiar with the discussions.

The mandate is expected to be announced as the three-day summit ends on Tuesday. It comes as part of broader discussions about limiting Russia’s profits from energy exports. The leaders are also expected to mention a mechanism to curb Russian oil prices in the final announcement.

Setting mandatory ceilings on Russian gas imports would be important for European Union countries, such as Italy, which rely heavily on Russian supplies and have promoted the idea, both at European and global level.

The war in Ukraine and the curtailment of Moscow’s profits from rising energy prices were among the key issues addressed by G7 leaders meeting for three days in the Bavarian Alps, according to Bloomberg.

Talks between the negotiators are ongoing and are expected to continue overnight to agree on a joint statement, the same sources told Bloomberg.

Negotiators – especially those from the US and Italy – are promoting a system that restricts the flow of money to Russia and may also curb inflation as energy prices continue to rise. The US is pushing for a mechanism that limits oil prices, while allowing big buyers such as China and India to keep buying. Italian Prime Minister Mario Draghi has supported the use of a similar mechanism for gas.

European Union leaders have called on the Commission to investigate the imposition of a cap on gas imports at a specific price. However, some Member States remain skeptical, arguing that this would cause market distortions, while others worry that Russia could react and further cut supplies.

Moscow has already reduced gas supplies to Europe’s main importers, including Germany and Italy, citing technical issues.

Yellen – Petridi communication about Russian oil

Finance Minister Janet Yellen is pushing European bonds to adopt measures designed to impose a price cap on Russian oil, a move that US officials hope will keep global crude supplies afloat. in a separate post by Bloomberg.

Glenn spoke Monday with Konstantinos Petridis, the Cypriot finance minister who operates the largest ship management center in Europe. The two “spoke of the goal of setting a price limit on Russian oil that would deprive the Kremlin of revenue to finance the war in Ukraine, while also mitigating the secondary effects on the world economy,” the ministry said in a statement. Finance.

The United States is also pushing Cyprus to ban Cypriot-flagged ships from transporting Russian oil to third countries, according to a source familiar with the matter. Petridis expressed concern about such a move, as many other countries do not impose sanctions on Russia, an unnamed source told Bloomberg.