Connect with us

Hi, what are you looking for?

Energy

G7 finance ministers agree to Russian oil price cap

Finance ministers from the G7 grouping of leading democracies today agreed to set a price cap on Russian oil exports — an effort to limit the Kremlin’s ability to finance its war in Ukraine.

They called for plan to set a price limit and only permit service providers to continue to do business with Russian seaborne oil and petroleum products if they were sold at or below that level. The price cap will be set together with a broad group of countries.

The plan would rely on refusing Russia access to the vital London insurance market, which covers 95 percent of the global oil shipping industry, if it does not respect the price cap.

“We will curtail Putin’s capacity to fund his war from oil exports by banning services, such as insurance and the provision of finance, to vessels carrying Russian oil above an agreed price cap,” said U.K. Chancellor of the Exchequer Nadhim Zahawi.

Despite efforts by the EU and U.S. to limit Russian oil sales, Moscow has boosted exports to countries like India and China.

“The G7 will significantly reduce Russia’s main source of funding for its illegal war, while maintaining supplies to global energy markets by keeping Russian oil flowing at lower prices,” U.S. Treasury Secretary Janet Yellen said.

Russia is strongly opposed to any effort to set a price cap.

Russian Deputy Prime Minister Alexander Novak threatened to stop selling oil to any country that adopts a price cap mechanism.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Europe

BERLIN — Germany is on edge. Early Wednesday, thousands of balaclava-clad German police officers fanned out across the country, arresting 25 people and seizing...

Energy

Press play to listen to this article Voiced by artificial intelligence. BERLIN — A historic coalition set out ambitious goals for reforming Germany. Then...

Europe

Ukrainian forces were the “first” to target civilian infrastructure, a swaying Russian President Vladimir Putin claimed Thursday while drinking sparkling wine, a video of...

Europe

DUBLIN — If you’re a Northern Ireland Assembly member, the cost of political failure at Stormont will be around 800 quid a month. Secretary...

Europe

Press play to listen to this article Voiced by artificial intelligence. On March 22 of 2021, several of the world’s most dangerous men descended...

Industrial Policy

The European Commission wants to cripple “Russia’s military and industrial complex” with a new package of sanctions hitting a range of industries, according to...

Energy

This article is part of POLITICO’s Global Policy Lab: Living Cities, a collaborative journalism project exploring the future of cities. Chapter 3 of the project...

Europe

BERLIN — Ammunition running low, fighter jet purchases possibly delayed, defense spending promises missed. Germany’s grand ambitions to become Europe’s military power are off...