The Group of Seven ‘G7’ leading Western economies is considering a complete ban on services related to the shipping of Russian oil and petroleum products sold at market prices, media in that country reported on Tuesday.
The G7, which incorporates the United States, Canada, Japan, Germany, France, Italy and Britain, is looking at a range of approaches. These include “options for a comprehensive ban on all services related to the shipping of Russian crude oil and petroleum products by sea around the world, unless the oil is purchased at or below the price to be agreed upon in consultation with international partners,” RIA Novosti quotes from a statement made by the group.
The comments refer to a proposed oil-price cap mechanism that the G7 wants to impose on Russian crude, to limit Moscow’s revenue from oil exports. The mechanism could reportedly be in place by early December, when EU sanctions banning seaborne imports of Russian crude will come into force.
Along with the ban, the G7 would also consider mechanisms that would allow “vulnerable” countries to keep their access to energy resources, including from Russia, RIA Novosti adds.
The G7 wants the price of Russian crude to be set at a level above production costs but significantly lower than current market prices, Reuters reported last month.
Moscow said it would stop supplying countries that join the initiative, as a price ceiling would make oil more expensive and hurt Russian producers. Russian officials have also indicated that if oil exports become unprofitable, the country will shut down production.
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