The status of the price caps has not yet been announced, but is expected to be implemented “as a matter of urgency”. Russia has already announced that it will not export oil to countries participating in the initiative.
The website says the oil price cap program is “specifically designed” to reduce Russia’s revenue and ability to finance war. The entire document from G7 finance ministers aims to “limit the impact of Russia’s war on global energy prices. Low and Middle Income Countries”.
The mechanism is based on the introduction of a cap on the price of Russian oil planned by the G7 Prohibition of insuring Russian oil transportation at prices above a set limit. What it will look like, is still unknown.
The G7 – apart from the US – includes Great Britain, Germany, France, Italy, Canada and Japan. The European Union also participates in the work of the Committee.
States have agreed to enforce regulations in this regard Before the EU ban on seaborne imports of Russian oil takes effect on December 5. This would require a unanimous decision by all EU countries.
As the Wall Street Journal notes, the success of the move will depend on how major buyers of Russian oil, such as China and India, react. The plan also assumes that Russia – contrary to Kremlin announcements – will sell oil at a lower price, rather than refrain from selling it.
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