G7 seeks more price restrictions on oil products from Russia
2023.01.10 07:39
G7 seeks more price restrictions on oil products from Russia
By Kristina Sobol
Budrigannews.com – According to a G7 official, the Group of Seven coalition will try to set two price caps on Russian refined products in February—one for products that trade at a premium and one for products that trade at a discount.
In addition to the EU embargo on Russian crude imports by sea, the coalition—which includes Australia, Canada, Japan, the United States, and the European Union—introduced a $60 per barrel price cap on Russian crude on December 5.
To further reduce Moscow’s revenue from energy exports and its capacity to finance its invasion of Ukraine, the coalition will also impose price caps on Russian products starting on February 5. These products include fuel oil, diesel, and kerosene.
The official, who requested anonymity, stated that setting a price limit on Russian oil products is more difficult than setting a price limit on crude alone because there are numerous oil products whose prices frequently depend on where they are purchased rather than where they are produced.
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He stated that this was the reason the G7 was considering two price caps, citing the example of diesel and kerosene, which typically sell at a premium to crude while fuel oil typically sells at a discount.
