G7 countries ‘very close’ to agreeing $60 price cap on Russian oil
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The G7 countries (UK, Germany, Italy, Canada, France, Japan and the US) are “very, very close” to reaching an agreement to cap the price of Russian offshore oil at $60 per barrel, said Reuters senior member of the coalition. The agreement will include an adjustment mechanism to keep the oil price cap at 5% below the market price.
An unnamed official told reporters that the price ceiling should be finalized in the coming days, at the latest on Monday, December 5. According to him, the representatives of the G7 “seem to be satisfied” with the mechanism under discussion, which “is aimed at limiting revenues from Russian oil while maintaining adequate supplies to the world market.”
Similar restrictions, according to Bloomberg, discusses European Union (EU). However, Poland and the Baltic countries require to set a price ceiling at $30, which caused controversy among European countries. Because of this, the EU can not reconcile these limits. Experts at the same time considerthat such a measure may not lead to a reduction in the income of the Russian Federation.
Read about the discussion of the initiative in the publication “Kommersant” “He’s not low, not high”.
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