Published:
4 Nov 2022 01:32 GMT
Sources consulted by the agency indicated that the initial price has not yet been agreed, but it will be ready in the “next few weeks”.
The member countries of the G7, together with Australia (which is not part of that organization), agreed on Thursday to establish a fixed price for the purchases of Russian oil that they are willing to make, instead of adopting a floating rate.
“The coalition has agreed that the cap will be a fixed price to be reviewed periodically, rather than a discount to a benchmark index,” a source familiar with the matter was quoted as saying. Reuters. “[La decisión] It will increase market stability and simplify compliance to minimize the burden on participants,” he added.
According to another person consulted by the agency, the coalition was concerned that a floating price, set below the international benchmark Brent, could allow Russian President Vladimir Putin to “manipulate” the mechanism by reducing supply. On the other hand, as noted, the disadvantage of the agreed system is that it will require more coalition meetings and more bureaucracy to review it regularly.
Although the starting price has not yet been set, sources familiar with the deal say it will be ready in “the next few weeks.”
The G7 bloc, made up of the US, Canada, the UK, Germany, France, Italy and Japan, agreed in September to set caps on the price of Russian oil, a measure that seeks to reduce the income of the Slavic country and limit the impact of the conflict in Ukraine over world energy prices. The agreement is expected to enter into force on December 5.
