G7 to implement Russian oil price cap

G7 to implement Russian oil price cap

The G7 will “urgently” implement a cap on the price of Russian oil and encourages a broad coalition of countries to participate in this initiative intended to deprive Moscow of part of its windfall from the energy sector, according to a statement on Friday.

“The price cap will be set at a level based on a series of technical data and will be decided by the entire coalition before its implementation”, write the seven countries in the statement, ensuring that future prices will be “communicated publicly in a clear and transparent manner”.

The decision, which must be implemented “urgently” according to the G7 declaration, was finalized during a virtual summit of finance ministers from the seven most industrialized countries.

“Russia is benefiting economically from the uncertainties linked to the war on the energy markets,” German Finance Minister Christian Lindner told reporters after the meeting.

“The price cap is specifically designed to reduce Russia’s revenue and its ability to finance its war of aggression, while limiting the impact of Russia’s war on the world”, especially “weak countries”. income”, explains the G7 in its declaration.

As many countries as possible

Concretely, Russia would sell its oil to these countries at a lower price than the one at which it sells it today, but which would remain higher than the production price, so that it has an economic interest in continuing to sell it to them, and so that it does not cut its deliveries.

The challenge is to rally as many countries as possible because the price cap will only work if all the major buyer countries participate, underline the experts, who point in particular to the role of China and India.

To this end, the G7 “invites all countries to give their opinion on the design of the price cap and to implement this important measure”, in order to establish “a broad coalition” to maximize the effect of the measure. .

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