The group of seven (G7) has reached an agreement this Friday to establish a price limitation to the Russian oil and other oil productsas reported in a statement published by the world’s richest countries club at the end of the meeting finance ministers. Moscow has already warned that will cut off the supply to any country that applies the measure, and has threatened the same measure with respect to gas if the retaliation is also applied to the latter power source. As an appetizer, Gazprom, the Russian gas monopoly, has announced that it will not be able to resume the flow through the Nord Stream 1 gas pipeline this Saturday, as planned, hiding behind alleged new technical problems.
The price limitation will be made an effective form through a blanket ban to provide services that allow the maritime transport of these products of Russian origin. It will only be allowed to provide transportation services if the oil and its derivatives are purchased from a equal or less price that set by the coalition.
In their statement, the finance ministers of the G7 nations have not detailed the limit price. They have only indicated that the figure will be decided according to a range of technical details. “The price limit will be communicated publicly in a clear and transparent way,” the G7 has indicated. Also, these prices will be reviewed If necessary.
The club of countries they are part of USA, United Kingdom, FranceItaly, Canada, Germany and Japan, with the EU as a guest, assures that this measure is “specifically designed” for reduce Russia’s income and its ability to finance war, while limiting the impact on global energy prices. The G7 has invited all countries that want to provide comments and ideas on the design and implementation of the price cap. “We seek to establish a broad coalition to maximize its effectiveness, and we urge all countries still seeking to import Russian oil to commit to doing so same or lower prices to the limit”, collects the G7 statement.
According to data from the International Energy Agencybetween March and July Russia entered $95 billion (94,870 million euros) for its oil and gas exports to the European Union alone, almost double than in previous years.
For its part, the European Union has expressed its support for this measure, since it strengthens sanction packages which has been approved in recent months. “The Commission will fulfill its role by trying to achieve unanimity among the Twenty-seven Member States to implement this measure in the EU. Our goal is to do it in the time horizon agreed under the sixth package of EU sanctions: December 5, 2022 for crude oil and February 5 for derivatives”, added the European Commissioner for Economy, Paolo Gentiloniit’s a statement.
oil supply
Russia has not been slow to react. Hiding behind the presumed occurrence of a leakGazprom announced, late at night in a belated statement, that it would not be able to resume gas pumping, contrary to what was announced, a measure that constitutes a unprecedented escalation in the energy crisis gripping the European continent.
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Moscow had already warned to suspend the oil supply Y derived products of oil to countries that decide to limit the price of Russian crude. “If they impose price restrictions, we will simply not supply oil and petroleum products to the companies or states that impose them, as we will not work in an uncompetitive manner,” said Deputy Prime Minister Alexander Novak in statements collected by the official agency TASS.
Former Russian Prime Minister and deputy head of the Security Council, Dmitry Medvedevhas gone further and has warned that “there will be no Russian gas” in Europe if the Twenty-seven put a cap on the price of this source of energy, after the president of the European Commission, Ursula von den Leydenpublicly support the measure. “The same thing will happen as with oil, there will simply be no Russian gas in Europe,” Medvedev wrote on Telegram.