G7 discusses tighter oil restrictions on Russia – Bloomberg

The Group of Seven countries are discussing a possible reduction in the so-called price cap for Russian oil transported by sea to limit Russia's oil revenues.

Source: Bloomberg, as reported by European Pravda

Details: According to Bloomberg, the G7 is discussing various options for tightening oil restrictions against Russia - from actually replacing the price ceiling mechanism with a complete ban on working with Russian oil to lowering the price threshold from the current US$60 to about US$40.

The Bloomberg sources noted that discussions on the measures are ongoing, and there is no consensus on further steps.

The article says that at the same time, the G7 countries are seeking to balance the potential economic impact of any measures against Russian oil with issues such as maritime security.

In December 2022, the West set an upper limit on the price of Russian oil exports by sea at US$60 per barrel. The sanctions also prohibit Western companies from providing oil transportation services from Russia at a price higher than the ceiling.

The restrictions have forced Russia to reorient its oil sales to much more distant countries, such as China and India, and to invest in "shadow fleets" of worn-out tankers that are not officially tracked.

In response, the Group of Seven countries have imposed sanctions on dozens of vessels and companies involved in this shadow trade.

In addition, a number of Northern European countries have also stepped up insurance checks on Russian tankers passing through their borders.

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