G7 countries plan to limit the cost of Russian oil by December 5

The G7 countries (USA, Canada, Great Britain, Japan, Germany, Italy, France) will introduce a price limit for oil supplied from Russia by December 5, about this informed U.S. Deputy Treasury Secretary Wally Adeyemo on Yahoo Finance.

“We plan to introduce a price ceiling before December 5, when the sixth EU package comes into force. And it will be introduced by the United States, the G7 allies and a number of other countries that have agreed to join this coalition, ”said the representative of the department. He also noted that he hopes that more countries will join this policy, including China.

Earlier, the Financial Times wrote that the price limit for Russian oil products will come into force on February 5, 2023. According to the newspaper, the European Commission supported the introduction of price limits, but in order for these measures to be effective, it will be necessary to convince a significant part of the countries buying oil to join them. Russian oil, including India, which traditionally has close ties with Russia.

The fact that India is considering the possibility of administratively limiting prices for Russian oil was previously reported by Adeyemo. According to him, the Indian side has given signals that it can join the policy of the G7 countries to introduce a price ceiling.

In addition, on September 2, the European Commission also proposed to impose restrictions on the price of Russian gas. Officials believe that the introduction of such measures will ensure the supply of Russian energy resources, while significantly reducing Russia’s oil and gas revenues.

In response to these initiatives, Russian President Vladimir Putin, speaking yesterday at the plenary session of the Eastern Economic Forum (WEF), called the idea of ​​limiting prices “nonsense” and “absolutely stupid decision”, which will lead to a further increase in energy prices in Europe and the countries that make this decision. He said that Russia would not supply energy resources to those countries that “impose” their conditions. “Those who impose something on us are not in the position today to dictate their will to us. Let them dress up. <...> We will not supply anything outside the scope of the contract, we will not do anything imposed. We will only have one thing left, as in a well-known Russian fairy tale, to say: “Freeze, freeze, wolf tail,” Putin said.

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