The G-7 countries agreed on a ceiling on the price of Russian oil

The countries of The Group of Seven (G-7) agreed to impose a ceiling on the price of Russian oil. This was announced by world agencies on Friday after the end of the meeting of the finance ministers of the seven countries.

The decision aims to deprive Russia of the revenue needed to conduct its military operations and help lower energy prices on world markets.

On Friday, the leaders of the G-7 reconfirmed their commitment to implement common measures to punish Moscow for its “brutal, unprovoked, unjustified and illegal war against Ukraine,” said the official announcement after the meeting.

The specific price cap is to be determined in future talks, and there is still much uncertainty as to how it will be implemented. Countries other than the G7 members USA, Canada, France, Germany, Great Britain, Italy and Japan will be able to participate in the talks.

Global suppliers will only be allowed to do business with Russian marine oil and petroleum products if the supplies are sold at or below that price.

For such a price cap to have a significant impact, however, it must also be implemented by the European Union (EU), which requires unanimity among its 27 member states. Some are reluctant to jeopardize domestic energy supplies as winter approaches.

Disruptions in energy supplies from Russia sent prices soaring worldwide, causing particular hardship for poorer countries but also hitting the economies of the industrialized world.

According to the G7 countries, the price cap will limit the impact of Russia’s “war on global energy prices, especially for low- and middle-income countries.”

The G-7 statement came after the former Russian president Dmitry Medvedev warned the EU that Moscow could stop natural gas supplies to the union if it introduced a price cap on Russian supplies. The president of the European Commission, Ursula von der Leyen, called for this earlier.

Von der Leyen on Thursday called for a cap on the price of Russian pipeline gas to prevent Moscow from manipulating the EU’s energy market in response to sanctions triggered by the Kremlin’s invasion of Ukraine.

Medvedev, for his part, said the cap would provoke the Kremlin’s reaction and threatened that “there will simply be no Russian gas in Europe.”

The article is in bulgaria

Tags: countries agreed ceiling price Russian oil

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