Monitoring Desk
BRUSSELS: The Group of Seven (G7) began to press Russia on the oil price cap as Western countries try to limit Moscow’s ability to finance its war in Ukraine.
Earlier, Russia said it would not abide by the G7 measure even if it had to cut oil production.
G7 Nations
The G7 nations and Australia earlier agreed to a $60 per barrel price cap on Russian seaborne crude oil.
The price cap came into effect on Monday, denying Russia, the world’s second-largest oil exporter, the market for the export of its oil.
Earlier, Ukrainian President Volodymyr Zelensky said that the world showed utter weakness by setting the cap at $60 per barrel.
Alexander Novak, Russian Deputy Prime Minister, said on Sunday the oil price cap was gross interference in its internal affairs that contradicted the rules of free trade.
Alexander Novak, who is also in charge of Russia’s oil, gas, atomic energy and coal, said they were working on a mechanism to avoid the price cap because such interference could further destabilize the oil market.
He said that they will sell oil and other petroleum products only to those countries that will work with them under latest market conditions, even if they have to reduce production a little.
The G7 agreement allowed Russ to ship its oil to other countries using G7 and EU tankers, insurance companies, and credit institutions only if the oil cargo was bought at or below the $60 per barrel cap.
