G7 Countries to Approve Program for Capping Russian Oil Prices

The finance ministers of the G7 countries will approve a program for capping the maximum price of Russian oil during their meeting scheduled for Friday, September 2. This was reported by Gazeta.ru, referencing The Wall Street Journal.

According to sources familiar with the content of the document, the program also includes setting a maximum price on oil products produced in the Russian Federation.

Earlier, White House Press Secretary Karine Jean-Pierre stated that the U.S. considers limiting the maximum price of Russian oil to be the most effective tool for reducing Moscow’s revenues and global fuel prices. She noted that the Russian side is seeking new markets for its oil, but such a move would limit the revenues of the Russian Federation.

Prior to this, Reuters reported that G7 countries plan to set a maximum price for Russian oil by December 5, 2022. It was noted that the price should exceed production costs but be lower than the market price.

Russia’s Deputy Prime Minister Alexander Novak had warned that the country would not supply oil to global markets if the price caps discussed by G7 countries are set lower than production costs.