G7 finance ministers plan to apply “urgently” a ceiling on the price of Russian oil and oil products, and are encouraging a “broad coalition” of countries to participate in it, they confirmed in a joint statement issued after their meeting today, Friday.
“The price ceiling will be set at a level based on a range of technical data and decided by the whole coalition before it is implemented,” the statement said, with G7 finance ministers assuring that future prices ” will be publicly announced in a clear and transparent manner”.
“Our aim is to align the implementation with the timetable of the relevant measures within it sixth package of sanctions of the European Union”, point out the members of the G7 – namely the USA, Canada, France, Germany, Italy, Japan and Britain.
US Treasury Secretary Janet Yellensaid a price ceiling on Russian oil would help the fight inflationwhile at the same time it will hurt Moscow’s ability to finance the war in Ukraine.
The cap helps achieve “our dual goals, putting pressure on global energy prices while depriving Putin of revenue to finance his brutal war in Ukraine,” Janet Yellen said in a statement.
The Japanese Finance Minister, Sunichi Suzukiwelcomed the G& finance ministers’ agreement to set a price ceiling on Russian oil exports and called for the speedy implementation of this decision.
Suzuki told reporters that the cap would help moderate rising energy prices and inflation.
Russia: Embargo on countries that will apply the cap
The representative of the Kremlin Dmitry Peskov threatened that Russia will not export oil to countries that impose a ceiling on its oil, stressing that the relevant move will lead to a significant destabilization of the global oil market.
“Companies that impose a price ceiling will not be among the recipients of Russian oil,” Peskov noted, echoing comments made yesterday Thursday by Russian Deputy Prime Minister Alexander Novak.
THE European Union imposed earlier this year partial ban on Russian oil markets; something which Brussels says will cut off 90% of Russian exports to the European bloc when fully implemented.
The President of the European Commission, Ursula fon der Laien, said at the same time today, Friday, that the time has come for the EU to consider imposing a similar ceiling on prices in Russian gas markets.
“I firmly believe that the time has come to impose a cap on Russian natural gas imported via pipelines to Europe,” said Ursula von de Leyen, who is set to present at the September 14 the overall plan of action of the Commission to deal with the consequences of the energy crisis.
The high prices of natural gas and the consequent “explosion» of its prices electric current now make the need for EU action and changes in Europe’s energy market imperative. All relevant steps will be discussed at the emergency meeting of EU energy ministers on 9 September.