G-7: A cap on Russian oil prices should be introduced immediately – Politics – The World – NOVA News

G-7: A cap on Russian oil prices should be introduced immediately – Politics – The World – NOVA News
G-7: A cap on Russian oil prices should be introduced immediately – Politics – The World – NOVA News

Finance ministers from the G-7 group announced their plan to impose price caps on Russian oil. The aim of the measure is to fight inflation on a global scale, while at the same time dealing a blow to Moscow’s ability to finance its war in Ukraine, US Treasury Secretary Janet Yellen said.

The measure aims to reduce Russia’s profits and its ability to finance its aggression, according to the final document from the meeting of G7 finance ministers. The text also states that the price cap is intended to “limit the impact of the war on global energy prices, especially in low- and middle-income countries.”

Under the G7 plan, companies will be allowed to trade in Russian oil and oil products only if they are sold below the ceiling price. This could be achieved by preventing Russian oil from being transported by sea unless it was purchased below the ceiling price, the G7 document said.

Gas and electricity prices in Turkey are rising sharply

So far, there are no details on what the marginal price will be. The final document notes that it will be “discussed publicly, clearly and transparently”. This is expected to happen in the next few days.

Before the announcement of the G-7 decision, the Kremlin warned that the imposition of ceiling prices on Russian oil and oil products could lead to retaliatory measures. “Companies that apply cap prices will not receive Russian oil,” Kremlin spokesman Dmitry Peskov said. “The adoption of such a decision will lead to significant destabilization of the oil market,” he added.

China and India, which are among Russia’s major trading partners, are likely to refuse to adhere to the G7 policy on Russian oil, analysts believe. So far, neither country has supported the sanctions that Western countries have imposed on Moscow over its invasion of Ukraine.

The G7, or Group of Seven, is an organization of leading economies that dominate global trade and the international financial system. It includes Canada, France, Germany, Italy, Japan, Great Britain and the United States. The other two major economies – India and China – are not in the G-7 group. Some Western politicians have expressed concern that without the participation of Beijing and New Delhi, the imposition of ceiling prices on Russian oil will not have much effect. Both countries have increased their purchases of Russian oil since the start of the war in Ukraine, reports Reuters.

Oil and natural gas prices have soared due to the war in Ukraine and the shortage of energy sources. The European Union plans to impose an embargo on Russian crude oil from December 5, which will apply to crude transported in tankers, as well as that which passes through most oil pipelines.

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The article is in bulgaria

Tags: cap Russian oil prices introduced immediately Politics World NOVA News

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