The G7 countries agree to cap Russian oil price - Statement

This is stated in a joint statement adopted on Friday, September 2, following the results of the meeting in Berlin.

"Today we confirm our joint political intention to finalize and implement a comprehensive ban on services that allow for the maritime transportation of crude oil and petroleum products of Russian origin around the world - the provision of such services will be allowed only if the oil and petroleum products are purchased at a price that is equal to or below the level determined by a broad coalition of countries that adhere to and implement this price ceiling," the document, published on the UK government's website, says.

The authors of the declaration call on other countries to introduce a price ceiling for Russian energy carriers, and oil-producing countries to increase oil production in order to replace Russian oil on the market. They emphasized that limiting prices will be beneficial primarily for poor countries that suffer from high prices on the energy market.

According to the ministers, the price restrictions have to reduce Russia's oil revenues and weaken its ability to "finance its war of aggression" against Ukraine and to limit the war's impact on global energy prices, especially for low- and middle-income countries. The initial price ceiling will be set "at a level based on a number of technical parameters" and will be agreed upon by the entire coalition, the statement says. In the future it will be possible to revise it if necessary.

Specific ceiling prices per barrel will be announced later. The decision itself will come into effect on December 5.

• According to media reports, the Ministers of Finance of the Group of Seven (G7) countries, during a virtual meeting on Friday, September 2, intended to approve a plan to limikt Russian oil prices. However, significant differences remain in the G7 regarding this proposal. Certain states have different views on how many countries outside the G7 must agree to a price restrictions for it to work.

• Meanwhile, on September 1, Russia threatened an embargo against countries that support the establishment of ceiling prices for oil from the Russian Federation.

• In an address on September 2, the President of Ukraine, Volodymyr Zelenskyi, proposed to go further in sanctions against the Russian Federation and called on the European Union to limit the price of Russian gas.