The G7 promises to strengthen control over compliance with the price ceiling for Rosneft

The G7 finance ministers promise to strengthen control over compliance with the price ceiling on Russian oil.

Finance ministers of the G7 countries announced their intention to intensify efforts to prevent attempts by the Russians to circumvent sanctions against Russian oil. This is reported by The Guardian.

The ministers also announced their intention to force the Kremlin to “increase the costs” of using the so-called shadow fleet to circumvent sanctions. According to them, Russia uses old, unmarked tankers, often without proper maintenance, to transport oil, hiding routes and cargo.

In addition, the G7 plans to strengthen controls over financial institutions to prevent their involvement in supporting the evasion schemes implemented by the EU and G7 countries. The US Office of Foreign Assets Control has previously reported that Russian banks have created a network of foreign subsidiaries to circumvent sanctions.

As early as December 2022, the G7, together with the EU and Australia, introduced price restrictions on Russian oil in order to reduce Russia’s income from its exports, while “preventing a shortage of fuel on the world market.” However, some countries, in particular China, continue to buy Russian oil, despite the restrictions.

It will be recalled that the price ceiling for Russian oil is set at $60 per barrel. Despite this, according to the Office of the President of Ukraine, the Russian Federation continues to earn about $20 billion every month from oil exports.

USM recently wrote that the G7 agreed to allocate $50 billion from frozen Russian assets to Ukraine.