US Blocks Proposal to Lower Russian Oil Price Ceiling at G7 Meeting

US Blocks Proposal to Lower Russian Oil Price Ceiling at G7 Meeting

According to The Financial Times, the United States has succeeded in removing from the G7 statement a proposal to lower the price ceiling for Russian oil. Canada, which chairs the G7 finance ministers' meeting in Banff last week, had initially proposed including the amendment in the joint statement.

However, at the request of US Treasury Secretary Scott Bessent, the proposal to lower the price ceiling on Russian oil was not included in the final document. The G7 statement said that participants "welcome efforts to reach a ceasefire. If such a ceasefire is not agreed upon, we will continue to explore all possible options, including maximum pressure options such as further strengthening sanctions."

France, Germany, Italy and the UK have advocated lowering the ceiling

According to The Financial Times, France, Germany, Italy and Great Britain have come out in favor of lowering the price ceiling for Russian oil. They stressed that in order to lower it, the decision must be supported by all EU members.

At the same time, Hungary and Greece, which had previously not agreed to lower the ceiling, are “considering this proposal.”

It was proposed to lower the ceiling to $50 per barrel

Earlier, Reuters reported that the European Union planned to propose at the G7 meeting a reduction in the price ceiling for Russian oil to $50 per barrel. Kyiv, however, sought to achieve a reduction to $30 per barrel.

Let us recall that on December 5, 2022, the European Union banned the import of Russian oil and, together with the G7, introduced a price ceiling on Russian oil for third countries at $60 per barrel.

Russian companies were forced to reorient supplies to new markets, mainly India and China. As a result, the price of oil from Russia recovered and already in July 2023 exceeded the established ceiling.

The US, EU and UK have imposed numerous sanctions on operators and tankers transporting Russian oil. However, these measures have had limited effect. In the spring of 2023, the price of Russian oil fell below the price ceiling due to the decline in the world price of oil.