G7 finance ministers agree to impose price cap on Russian oil
The G7 Finance Ministers have approved a plan to set a price cap on Russian oil in order to deprive Russian President Vladimir Putin of additional income to continue armed aggression against Ukraine.
This is said in the G7 Finance Ministers’ joint statement, which was published on the website of the British government following their online meeting, Ukrinform reports.
“Today we confirm our joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally – the provision of such services would only be allowed if the oil and petroleum products are purchased at or below a price (“the price cap”) determined by the broad coalition of countries adhering to and implementing the price cap,” the document reads.
The initial price cap will be set at a level based on a range of technical inputs and will be decided by the full coalition in advance of implementation in each jurisdiction.
It is noted that the price cap will be publicly communicated in a clear and transparent manner. The price cap´s effectiveness and impact will be closely monitored and the price level revisited as necessary.
It is stressed that the price cap is specifically designed to reduce Russian revenues and Russia´s ability to fund its war of aggression whilst limiting the impact of Russia´s war on global energy prices, particularly for low and middle-income countries, by only permitting service providers to continue to do business related to Russian seaborne oil and petroleum products sold at or below the price cap.
“We seek to establish a broad coalition in order to maximise effectiveness and urge all countries that still seek to import Russian oil and petroleum products to commit to doing so only at prices at or below the price cap,” the document reads.
The ministers also confirmed their support for Ukraine.
“We remain steadfast in our support for and solidarity with Ukraine. We will continue to stand with Ukraine for as long as it takes,” the document reads.
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