Despite sanctions, Russia rakes in billions from oil exports while consumers suffer from higher energy prices. The G7 countries want to change that.
Finance ministers from the G7 of economically powerful democracies want to lower Russian oil prices. A joint statement called on all countries that import Russian oil to join the move. “We aim for a broad coalition to maximize effectiveness,” the paper says.
In essence, the aim is to force Russia to sell oil to major buyers such as India at significantly lower prices in the future. This is expected to ease global oil markets and reduce the impact of the Ukraine war on fuel prices. Finance Minister Christian Lindner (FDP) said inflation is also expected to ease. At the same time, Russia will no longer be able to profit from rising oil prices and thus fill its war chest.
Scholz: Price caps only work if organized globally
Sea transport of crude oil and petroleum products of Russian origin will only be possible worldwide if the oil is bought below a certain price. Price caps could work if the West linked compliance with regulation for essential services such as insurance for oil transportation. They are mainly in the hands of the West.
Chancellor Olaf Scholz (SPD) recently emphasized that a price cap only works if it is organized globally. EU Commission President Ursula von der Leyen also said on the ZDF program “Mabrit Illner” on Thursday that “a large number of countries internationally” are necessary. “It now seems clear that we will achieve this goal.” Asked if China was also on board, he said: “Not everyone is on board.”