G-7 finance ministers decide today on price ceiling for Russian oil – Energy – manager.bg – Energy

G-7 finance ministers decide today on price ceiling for Russian oil – Energy – manager.bg – Energy
G-7 finance ministers decide today on price ceiling for Russian oil – Energy – manager.bg – Energy

Finance ministers from the G-7 are meeting today on the Biden administration’s proposal to impose a ceiling on Russian oil prices, Reuters reported.

The measure aims to cut revenue for Moscow’s war in Ukraine but keep the raw material flowing to avoid price spikes, G7 officials said.

The United States considers setting a price ceiling on Russian oil as the most effective tool to reduce Moscow’s revenues as well as global fuel prices, said the press secretary of the US administration, Karin Jean-Pierre, during a regular briefing.

According to her, the Russian side is looking for new markets for oil, but such a move will limit Moscow’s income.

“We believe this is the most effective way to deal a significant blow to Putin’s income,” the White House spokeswoman said, adding that such a measure would also lead to “a reduction in global energy prices.”

The meeting of the ministers from the club of the most developed economies will be held virtually, and at the end of it, they are expected to issue a joint communiqué on the decisions taken.

It is very likely that there will be a deal on the proposal for a price ceiling for Russian oil, says a representative of the European G-7.

Russia will not supply oil and oil products to countries that impose price limits, Russian Deputy Prime Minister Alexander Novak said, as quoted by RIA Novosti.

“For such companies or countries that will impose restrictions, we will not supply oil and oil products. We will not operate under non-market conditions,” Novak said.

He added that introducing such a mechanism risks undermining and destroying the market. “Those who will pay the price of such a move will once again be the European and American consumers who already pay today’s high prices,” said the deputy prime minister.

Oil is experiencing its worst decline since 2020, largely due to rising interest rates by the US Fed. Its price fell for a third month in a row, setting a new record of sorts in the past two years as traders fear a global economic slowdown due to Fed policies and China’s fight against the coronavirus.

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