G7 set ceiling price for Russian oil after EU
Following an agreement between the 27 member states of the European Union, members of the Group of Seven, as well as Australia (collectively the "Coalition for Price Restraints"), imposed a price cap on oil shipped by sea from the Russian Federation at $60 per barrel.
This was reported by the US Treasury, Censor.NET informs with reference to European Pravda.
"The price cap is an important tool to limit the revenues that Russia receives to finance its illegal war in Ukraine, as well as to ensure a reliable supply of oil to world markets.
This policy is particularly important to ensure the supply of oil to low- and middle-income countries, which have suffered greatly from the consequences of the Russian war," the statement said.
Next week, the Coalition to Restrain Oil Prices will ban a wide range of services, including marine insurance and trade finance, related to shipping Russian crude by sea unless buyers buy it below $60 a barrel.
Importers who buy Russian oil at a price not higher than the upper limit will have access to several services of the coalition countries, vital to the oil trade.
From February 5, 2023, this ban on services will extend to the maritime transportation of petroleum products of Russian origin, unless these products are sold at or below a price limit that will be announced by February 5, 2023.
The price cap policy is aimed at maintaining the supply of Russian oil to the world market while reducing the revenues that the Russian Federation receives from the sale of oil, especially in light of the increased prices caused by the war.
To achieve this goal, the EU and other countries in the Price Cap Coalition developed a price ceiling to keep Russian oil flowing at reduced prices.
