By Andreas Kissler
BERLIN (Dow Jones) — According to Federal Finance Minister Christian Lindner (FDP), the finance ministers of seven leading industrialized nations (G7) are counting on support in the European Union (EU) and beyond for the upper price limit they are aiming for for Russian oil. “Above all, we as G7 finance ministers agreed today that we want to form a coalition for this oil price ceiling,” said Lindner in a statement in Berlin.
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The G7 wanted to convince all EU countries and also promote the measure. “The more united and larger such a coalition for this price cap, the more likely it is that we can achieve good results quickly.” According to Lindner, the G7 also called on the “oil-exporting countries beyond Russia” to expand their production in this critical phase. “The price cap for Russian oil exports combined with an increase in production in the oil-exporting countries could really curb inflation very significantly,” stressed the finance minister. “And that is our common goal.”
Specifically, according to Lindner, the upper limit is to be introduced by initially extending an EU ban on services that enable the sea transport of oil and petroleum products of Russian origin to all G7 countries. In order to minimize the impact on the global oil markets, however, a “price exemption from the service bans” should be introduced. With this, ship insurance for Russian oil exports could continue to be provided despite the ban, “but on the condition that Russian oil and petroleum products are bought below a certain price”. They want to limit Russia’s income and at the same time reduce the economic damage to their own companies.
In a statement after a video conference, the G7 finance ministers committed to working “urgently to finalize and implement this measure”. “We reiterate our common political intention to finalize and implement a comprehensive ban on services enabling global sea transportation of crude oil and petroleum products of Russian origin,” they said. The provision of such services should only be allowed if these products are purchased “at or below a price” that defines the broad coalition of countries that adhere to and implement the price cap.
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(END) Dow Jones Newswires
September 02, 2022 09:53 ET (13:53 GMT)