G7 nations discuss potential tightening of Russian oil price cap – Bloomberg
Illustrative photo: Russian oil price cap may be tightened (Getty Images)
The G7 nations are considering raising the price cap on Russian oil. The current cap stands at $60 per barrel, Bloomberg reports.
G7 nations are discussing both a potential ban on Russian oil supplies and lowering the price cap from $60 per barrel to around $40.
Sources from Bloomberg highlight that the discussions are ongoing, and no consensus has been reached on the next steps.
Under the current price cap conditions, Western operators can insure and transport oil only if it is purchased below the threshold price.
Sources also emphasize that G7 countries, while considering options, aim to balance potential economic impacts with other issues such as maritime security.
Oil price cap
The G7 countries introduced the price cap on Russian oil at the end of 2022.
In response, Russia created a shadow fleet to circumvent Western restrictions and sell its oil at regular market prices.
Recently, the European Union imposed its 15th sanctions package against Russia, targeting this shadow fleet. The sanctions list includes 52 ships from third countries, bringing the total number of sanctioned vessels to 79.
For more details on Russia’s shadow fleet, see the material by RBC-Ukraine.
