By Spy Uganda Correspondent
The G7 agreed to impose a Russian oil price cap on Friday to slash funding for Putin’s war in Ukraine, while keeping crude flowing to avoid price spikes something Kremlin says is just an impossible dream.
However, officials are worried that the cap could be scuppered without the participation of major importers such as China and India, which have sharply increased their purchases of Russian crude since Vladimir Putin invaded.
And in a threat to the G7 nations, the Kremlin warned earlier on Friday that it would stop selling oil to countries that impose price caps on Russia’s energy resources, saying such a move would lead to significant destabilisation of the global oil market.
‘Today we confirm our joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally,’ the G7 ministers said.
The provision of maritime transportation services, including insurance and finance, would be allowed only if the Russian oil cargoes are purchased at or below the price level ‘determined by the broad coalition of countries adhering to and implementing the price cap.’
The ministers said they would work to finalize the details, through their own domestic processes, aiming to align it with the start of European Union sanctions that will ban Russian oil imports into the bloc starting in December.
The Group of Seven consists of Britain, Canada, France, Germany, Italy, Japan and the United States.
The ministers said they would seek a broader coalition of oil importing countries to purchase Russian crude and petroleum products only at or below the price cap, and will invite their input into the plan.