G7 nations consider options to rob Moscow of bumper oil profits

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THE BHARAT EXPRESS NEWS INSURANCE NEWS
THE BHARAT EXPRESS NEWS INSURANCE NEWS

The rich countries of the Group of Seven (G7), among other things, want to block the transport of Russian oil in order to deprive Moscow of most of its revenues during the invasion of Ukraine, unless it sticks to a price cap.

In a statement released by Britain, the G7 foreign ministers said they are “considering a comprehensive ban on all services that enable the transportation of Russian crude oil and petroleum products worldwide unless the oil is purchased at or below a price.” that in consultation with international partners.”

“In considering these and other options, in addition to our mitigation measures, we will also consider mitigation mechanisms to ensure that the most vulnerable and affected countries retain access to energy markets, including from Russia.”

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Some traders and oil market analysts doubt that a price cap would work, as Russia has found ways to ship its oil to Asia without the use of Western ship insurance.

The G7 is made up of Great Britain, Canada, France, Germany, Italy, Japan and the United States.

Many countries have imposed sanctions on Russia after the invasion of Ukraine, which Moscow calls a “special military operation,” but major oil consumers China and India have ramped up discounted Russian barrel imports to record levels.

Despite Russia’s oil exports hitting their lowest levels since last August, June export revenues rose $700 million month over month as a result of higher prices, 40% above last year’s average, the International Energy Agency said last month.

G7 countries aim for a price cap for Russian oil before December 5, when sanctions come into effect

Western leaders have proposed tackling that through an oil price cap to limit how much refiners and traders can pay for Russian crude — a move Moscow says it will not adhere to and could thwart by shipping oil to states that do not adhere to the price ceiling.

US Treasury Secretary Janet Yellen presented the price cap idea to Asian leaders on a foreign tour last month and told Reuters she had had “encouraging” talks with India.

Some traders and oil market analysts doubt that a price cap would work, as Russia has found ways to ship its oil to Asia without the use of Western ship insurance. Moscow could also halt exports of some oil altogether, leading to a further rise in energy prices

The G7 members have struggled to find ways to fill energy shortages and tackle rising prices, while adhering to their climate commitments amid tensions with Russia.

“As we gradually remove Russian energy from our domestic markets, we will seek to develop solutions that reduce Russian hydrocarbon revenues, support stability in global energy markets and minimize negative economic impacts,” the G7 statement said.

(Reporting by William James; writing by Noah Browning; editing by Kate Holton and Mark Potter)

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Profit Loss Energy Oil Gas

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