The finance ministers of the G-7 countries – Great Britain, Germany, Italy, Canada, France, Japan and the United States – agreed to introduce a ceiling on Russian oil prices, Sky News and world agencies reported.
It is moving “urgently” to impose a price cap on Russian oil imports as industrial powers seek to tighten sanctions against Moscow.
“We are committed to work urgently on the finalization and implementation of this measure,” the finance ministers said in a statement, without specifying the size of the restriction.
“We seek to build a broad coalition to achieve maximum efficiency and call on all countries that still seek to import Russian oil and oil products to commit to doing so only at prices equal to or below the cap on prices.”
This means banning the financing and insurance of Russian oil supplies if it is sold above the agreed price.
It is not yet clear what this price will be and who will determine it. Together, the G-7 announced it would ban Russian oil shipping services if it is sold above the established ceiling.
The G-7 is calling on oil-producing countries to increase production to reduce market volatility. The idea of capping oil prices is good only if India and China join it, experts say.
Earlier today, Kremlin press secretary Dmitry Peskov said that Russia will not cooperate on a non-market basis with countries that introduce a ceiling on oil prices, which will take another direction. A similar statement was made by Dmitry Medvedev, who is the Secretary of the Security Council, that the same applies to gas. Later today, the G7 is expected to agree on a gas price ceiling.
The EU will introduce a ceiling for oil on December 5, it is known from earlier. It is now being discussed to introduce a ceiling on electricity prices. In Western Europe, the production of electricity from gas plants is very common. For this reason, it is planned to separate the price of electricity from the price of gas, since its high values at the moment enrich enormously those who do not produce electricity from gas.