G7 proposes new price ceiling for Russian diesel

This is reported by Bloomberg.

It is noted that the US and its allies are trying to avoid serious market disruption. So the G7 is ready to agree with the EU if the block sets a price ceiling for Russian diesel fuel in the range of $100 to $110 per barrel.

The EU must reach a unanimous decision to set the price cap. The mechanism will operate by prohibiting EU companies from providing insurance or financial services for the transportation of Russian fuel unless it is sold at the price ceiling. It aims to limit Russia's revenues without disrupting global energy markets.

So far, the European Commission has proposed a cap of $100. The new G7 range means that the G7 would prefer a higher price - out of concern that setting it too low could lead to price spikes or supply disruptions in Europe - but that it would be satisfied with $100.

A Bloomberg source claims the talks are ongoing, but the parties are optimistic that a deal will be reached before the EU's import ban takes effect. Recently, Russian diesel fuel has been selling for between $115 and $120 per barrel.