September 27, 2022 11:06 GMT
G7 wants to set a Russian oil price cap around 30-45 days before December 5 according to US Treasury official Catherine Wolfram.
- "It is not scheduled formally, but hopefully 30-45 days ahead of time by Dec. 5," she said.
- "Russia really faces three choices. One, they can sell at or below the price cap and use G7 and other services. Or two, they can try to find alternatives, they can use their own insurance, they can use their own shipping, Chinese shipping, for instance, and three, they could refuse to sell," she added.
- "We see several economic and geopolitical costs to that third choice. First, on the economic side, especially as a function of where we set the price cap, we think that it will be capping Russia's economic self-interest to shut in oil. Secondly, from a geopolitical perspective by shutting oil, they will be denying the provision of oil to low- and middle-income countries, which we think carries geopolitical costs," she said.