Dec. 3 () –
The member countries of the G7 and Australia have reached a consensus to impose a maximum price of 60 dollars, about 57 euros to change, on the price of a barrel of Russian oil, in line with the unanimous decision of the Member States of the European Union.
With this decision, in addition to the Twenty-seven, Canada, the United States, Japan, the United Kingdom and Australia have pledged to prevent Russia from “benefiting from its war against Ukraine”, supporting stability in world energy markets and minimizing the economic effects of the war, as detailed by the countries in a joint statement.
As agreed within the European Union, the Russian crude oil barrel price limit will come into force on December 5, 2022. Likewise, the G7 countries and Australia have announced that they will harmonize the implementation of the price limit. in their jurisdictions.
Meanwhile, the States have reaffirmed their intention to gradually eliminate dependence on crude oil and its derivatives, especially those of Russian origin.
And despite their claims, they have made it clear that the price cap is designed not for their own use — as many of them hope to lessen their dependence on Russian oil soon — but so that domestic service providers won’t sell oil and its derivatives originate from Russia to third countries above 60 dollars, greatly restricting the income of the Kremlin.
“We encourage third countries seeking to import crude oil and petroleum products of Russian origin by sea to take advantage of the price cap. We note that this is in the economic interest of these countries, as imports below the price cap will help reduce energy prices and restrict Russia’s ability to further benefit from the war premium it has been earning,” the G7 said in its statement.
Still, states have pledged to “closely” monitor the effectiveness and impact of the oil price cap.
“We will be prepared to review and adjust the maximum price accordingly. (…) In the event of a price revision, we anticipate including a grandfathered form to allow transactions that were concluded prior to the revision in accordance with the previous maximum price “, they added.
