G7 group of countries and its allies have officially approved a cap on the price of russian oil. the plan stops countries paying more than $60 (â¬57; â£48) a barrel and was put forward by the g7 group of nations in september. on friday, the agreement was officially approved and poland announced its support after being reassured the cap would be kept at 5% lower than the market rate.
Agreement of a price cap comes just days before an eu-wide ban on russian crude oil imported by sea comes into force, also on 5 december. ukraine’s western allies plan to deny insurance to tankers delivering russian oil to countries that do not stick to the price cap. the us has already banned russian crude oil, while the uk plans to phase it out by the end of the year.
G7 finance ministers said in september that their plan to limit the price of russian crude would reduce moscow’s oil revenues and its ability to “fund its war of aggression”. white house national security council spokesman john kirby welcomed the agreement of an eu price cap on friday, saying it would slow russian president vladimir putin’s “war machine”. russia denounced the scheme, saying it would not supply those countries which enforced a price cap. before the war, in 2021, more than half of russia’s oil exports went to europe. since the war, eu countries have been desperately trying to decrease their dependency. though the measures will most certainly be felt by russia, the blow will be partially softened by its move to sell its oil to other markets such as india and china – who are currently the largest single buyers of russian crude oil.