G7 countries plan to review price cap on Russian oil – Bloomberg
Photo: G7 countries plan to review the price cap on Russian oil (Getty Images)
G7 countries plan to review the price cap on Russian oil to reduce Russia's revenues. The corresponding document is set to be published on February 24, Bloomberg reports.
According to the agency, the draft statement of the G7 countries notes that G7 finance ministers may jointly review the established price cap on Russian oil, which is currently set at $60 per barrel. This restriction was introduced to reduce Moscow’s revenues from energy exports.
It is noted that this step aims to increase Russia’s war costs in Ukraine to push it toward negotiations for genuine peace.
At the same time, it remains unclear whether all G7 countries support the proposed document in its current form. The text is expected to change as discussions continue.
Price cap on Russian oil
The European Union and the G7 countries set a price cap on Russian oil in December 2022. The current price stands at $60 per barrel.
However, during a speech at the World Economic Forum in Davos, US President Donald Trump called on Saudi Arabia and OPEC to lower oil prices again. He believes this would help end Russia’s war against Ukraine more quickly.
Additionally, it was previously reported that G7 countries are considering tightening the price cap on Russian oil, which is currently set at $60 per barrel.
Ukraine has proposed setting a price cap on Russian oil at $30 per barrel, arguing that this would severely limit Russia’s ability to finance the war.
Meanwhile, Trump’s team has suggested lowering the price cap on Russian oil to $45 per barrel.
