G7 Finance Ministers approve plan to cap prices on oil from Russia, media reports

This was reported by The Wall Street Journal with reference to sources, Ukrainian Pravda writes.

"Among the key points being discussed is the price at which the cap will be set. Officials are trying to strike a balance between limiting Russian revenues and maintaining incentives for Russia to sell its oil. According to people familiar with the price cap plan, it would apply to petroleum products such as fuel oil, another main Russian export," the news reports.

It is  stated that European officials doubt the plan will have a major impact on prices.

EU sanctions on insurance and financial services for Russian oil are due to take effect on December 5.  Under the price cap plan, the EU ban on insurance will be lifted, allowing Western companies to continue providing financial services for transporting and selling oil.  Russian oil will be supplied outside the US and Europe at a set price.

However, important differences remain within the G-7 regarding this proposal. Officials have different views on how many countries outside the G-7 must agree to a price cap for it to work.

As the G-7 nations themselves seek to completely ban Russian oil imports, the plan relies on the willingness of other global buyers in Africa, Asia and elsewhere to comply with the price cap proposal.

European officials say the EU is also still grappling with problems over the implementation of the plan.

As the publication notes, the bloc lacks the centralized sanctioning powers that the US has, which allows individual member states to encourage insurance and banking companies to stay in the market and not stop doing business for fear of breaking the rules.

EU officials also say there could be difficult discussions within the bloc over agreeing to amend the insurance ban, which would have to be approved by all 27 member states.