G7 Agree Plan to Implement Russia Oil Price Cap

The G7 has confirmed plans to implement a price cap on Russian oil The aim is to cut Russia’s oil revenue by forcing down the price of Russian oil

• “We confirm our joint political intention to finalize and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally,” G-7 finance ministers said in a joint statement.
• “The provision of such services would only be allowed if the oil and petroleum products are purchased at or below a price (“the price cap”) determined by the broad coalition of countries adhering to and implementing the price cap.”
• The G7 will have to convince EU members to amend their sixth round of sanctions on Russia. The EU sanctions include a ban on third party use of EU oil related insurance and financial services companies.
• The price cap would be effective in line with the EU’s embargoes on Russian oil imports of Dec 5 for crude and Feb 5 for refined products.