The review of the price cap on Russian oil has been postponed

The G7 countries postponed the review of the price ceiling for Russian oil, most of which is traded above the limit due to the rise in world prices.

Russian producers have found ways to sell oil using fewer Western vessels and insurance services. This makes it difficult for the West to enforce the price ceiling, as trade facilitation companies are outside their purview, Reuters writes.

Initially, EU countries agreed to review the price ceiling every two months and adjust it if necessary, while the G7 will review it as necessary, including “implementation and enforcement”.

Read also: In July, Russia earned $15 billion from oil exports.

However, the G7 has not reviewed the restrictions since March. Anonymous sources familiar with G7 policy said the group had no immediate plans to adjust the scheme.

“There were talks in June or July about holding a review, or at least talking about it, but it hasn’t officially happened,” one diplomatic source said.

Meanwhile, the upcoming UN General Assembly, which will be held later in September 2023, could become an informal platform for price cap negotiations.