G7 Countries Intend To Impose Price Restrictions On Russian Oil Products As Well

The coalition seeks to deprive Moscow of revenue.

The G7 (G7) countries intend to impose two price caps on Russian oil products in February: one for products trading at a premium to the price of crude oil and another for products trading at a discount.

This is reported by Reuters citing a G7 official.

"The coalition, which includes Australia, Canada, Japan and the United States, as well as 27 European Union countries, has imposed price limits on Russian oil of $60 a barrel since Dec. 5, in addition to an EU embargo on Russian crude imports by sea," Reuters writes. - "From February 5, the coalition will also impose price limits on Russian products such as diesel, kerosene and fuel oil to further reduce Moscow's energy export revenues and its ability to finance the invasion of Ukraine."

The price cap on oil products is more complex than a price cap on crude oil alone, as there are many oil products and their price often depends on where they are bought rather than where they are produced, the official said.

Citing the example of diesel and kerosene, which are usually traded at a premium to crude oil, while fuel oil is usually sold at a discount, he said that is why the G7 is considering two price caps.

"While the coalition seeks to deprive Moscow of revenues, it wants to avoid upsetting the balance of the global energy market and raising prices for consumers in its home countries," the publication said. "International oil prices rose slightly after the December 5 price cap was imposed due to fears of supply disruption, but have since fallen again Russia has pledged not to sell oil to countries that have adopted the restrictions, which could be particularly difficult for Europe in the case of oil products."

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail [email protected]