The G7 countries will limit the prices of Russian oil, what is the threat to Russia?
2022.11.18 12:06
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The G7 countries will limit the prices of Russian oil, what is the threat to Russia?
Budrigannews.com – The group of seven countries, according to people familiar with the matter, aims to announce at what level they will set a price cap for Russia next Wednesday.
The Biden administration is expected to privately share the proposed price ahead of a meeting of the European Union ambassadors scheduled for March 11. 23, people said.
If the EU ambassador supports the proposal, the plan is to announce the cap that evening, people said, but the timing remains fluid.
The G-7 and EU-backed cap would prohibit companies from providing transportation and services such as insurance, intermediation and financial aid necessary to transport Russian oil anywhere in the world, unless the oil is sold below the agreed threshold.
Russia’s crude oil program is expected to come into force after Dec. 5, however, the US and UK have said their company will be given a grace period to unload their cargo until May. 19 Take into account shipments loaded before the cap comes into force. The EU has not said whether it will reflect its provisions.
Those in the coalition, who are familiar with the negotiations, were pushed back to Nov. 23, saying that there is a lack of certainty on when the EU is likely to finalize the approval of any price level.
The allies had previously discussed setting a cap somewhere between cap40 and 6 60 per barrel, which ranges from Russian production costs to pre-war levels, but the two people said they could surpass that. The purpose of the cap is to keep Russian oil on the market to avoid rising prices, while simultaneously reducing Moscow’s revenues.
Most G-7 countries and the EU will stop importing Russian crude this year. Provisions for refined petroleum products, including these price caps, are expected to come into force early next year.
US Treasury spokeswoman Lily Adams declined to comment, and the EU did not immediately reply to a request for comment.
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