Finance Ministers of the countries of the “Group of Seven” (G7) will discuss on September 2 the introduction of marginal prices for oil from Russia. This was announced on August 31 by John Kirby, coordinator of the US National Security Council for strategic communications.
“US President Joe Biden and the leaders of the G7 countries have instructed their representatives to explore the idea of introducing an international price ceiling for Russian oil. This is something that will be discussed this week during the meeting of the G7 finance ministers, which will be held on Friday, ”Kirby said at a briefing.
He noted that the introduction of an oil price ceiling would be an effective way to hit Russia’s profits.
Earlier on August 25, US Deputy Secretary of the Treasury Wally Adeyemo expressed concern about rising oil prices, when access to Russian raw materials will be limited on December 5.
On August 24, Bloomberg reported that Russia has offered a number of Asian countries long-term contracts for oil supplies at a deep discount in order to counteract the initiative of the G7 countries to set a ceiling on energy prices.
On August 20, Deputy Foreign Minister of the Russian Federation Alexander Pankin, commenting on the G7 idea to set a ceiling price for Russian oil, said that Russia would not sell oil at a loss, and warned that if limits were introduced, the oil market would get out of a fragile balance and experience a shock. As a result, quotes will skyrocket, which is what the initiators of introducing a ceiling on prices for Russian fuel are so afraid of, the Deputy Foreign Minister noted.
On July 27, Reuters reported that the G7 countries intend to impose a ceiling on oil prices from Russia by December 5. It was noted that the leaders of the G7 want to limit the price of oil from Russia in such a way that they exceed the cost of production, but at the same time be below current market prices.
On July 22, the head of the Central Bank of the Russian Federation, Elvira Nabiullina, said that the introduction of a price ceiling for Russian oil would cause an increase in world oil prices in the energy markets. She noted that Moscow will redirect supplies to countries that do not join this initiative.
On June 17, Russian President Vladimir Putin called the irresponsible macroeconomic policies of the G7 countries the cause of all the unfavorable processes on the world agenda.
Western countries have stepped up sanctions pressure on Moscow in response to a special operation to protect the civilian population of Donbass, which began on February 24. The special operation began against the background of the aggravated situation in the region in mid-February.
For more up-to-date videos and details about the situation in Donbass, watch the Izvestia TV channel.