G7 plans to tighten sanctions against Russian oil
20.12.2024 - 12:02
The G7 countries are discussing new price caps on Russian oil exported by sea.
The G7 countries are considering new ways to limit Moscow’s oil revenues to weaken its ability to finance its war in Ukraine, Bloomberg reported.
The discussions include two main options: lowering the price cap from the current $60 per barrel to $40 per barrel or completely banning the processing and transportation of Russian oil.
According to insiders, discussions are ongoing, but a final decision has not yet been made. Currently, Western operators can transport and insure Russian oil only if its price does not exceed a set limit.
Despite these restrictions, Moscow is actively using a shadow fleet of tankers with unknown insurers and owners to deliver oil to Asia, which allows it to avoid sanctions. In response, the G7 imposed additional sanctions on dozens of vessels and organizations involved in this illegal trade.
The price cap was intended to reduce Russia’s revenues without a sharp increase in world oil prices. However, with oil prices falling and a market surplus expected by 2025, Ukraine’s allies are considering more drastic steps.
Recall that on the eve of the meeting, 12 Nordic countries reached an agreement on joint actions aimed at countering Russia’s “shadow fleet”. Now, Russian ships passing through the Baltic Sea will be detained or subject to sanctions if they fail to provide insurance documents.
