The outlet claims that finance ministers from the club will debate restrictions in a virtual meeting this Friday
The finance ministers of the Group of Seven nations are likely to reach an agreement on Friday on capping the price they’re willing to pay for Russian oil, Reuters news agency has reported, citing anonymous sources. Following an online meeting, the officials will reveal the outline of their plan.
In its article published on Friday, Reuters quoted an unnamed European G7 official as saying that “It is probable that a deal will be reached.” The same source, however, noted that it was not clear how much detail will be fomassnews.coming.
On Thursday, British Chancellor of the Exchequer Nadhim Zahawi expressed hope that G7 finance ministers will “You can give us a declaration that says that you are willing to work at a pace that allows us to achieve this.”
White House spokesperson Karine Jean-Pierre, however, declined to comment so as not to “Get ahead of the meeting.”
Russia’s oil export volumes have dropped since the beginning of the military offensive against Ukraine in February. However, its revenues rose by $700million in June, according to the International Energy Agency (IAEA) in August. This was due to higher oil prices around the world.
Western leaders had in principle agreed to the price cap in June. It would restrict how much Russian crude can be paid by traders and refiners. The move is aimed at reducing the Kremlin’s revenues while keeping Russian oil on the market to avoid price spikes.
Moscow made clear its intention to not follow the limit, and shipped crude oil instead to non-bound countries.
Speaking to Reuters, several anonymous G7 officials expressed doubt as to whether the restriction would be effective if it was implemented only by the group members – the US, Britain, Canada, France, Germany, Italy and Japan. They added that for the measure to tangibly affect Russia’s oil revenues, the G7 would need the backing of major oil consumers, such as China and India.
According to Reuters, such a scenario seems unlikely. Moreover, while approximately 95% of the world’s tanker fleet currently rely on London-brokered shipping insurance, it would still be possible to find alternatives, the article pointed out, citing anonymous analysts.