EU and G7 Introduce Price Cap on Russian Oil

by Olha Povaliaieva
Saturday, December 3, 2022
EU and G7 Introduce Price Cap on Russian Oil

On December 2, Ursula von der Leyen announced the introduction of a marginal cost for seaborn oil

It is known that from December 5, the countries of the European Union and the G7 introduce a complete ban on the import of Russian crude oil. However, to provide developing countries at a limited price, it was decided to introduce a ceiling price for seaborne oil. On December 2, the head of the European Commission announced the adoption of a historic decision that will help partner countries "stabilize global energy prices, benefiting emerging economies around the world."

"It will stabilize global energy markets because it allows some Russian seaborn oil to be traded, brokerage, transported by EU operators to third countries as long as it is sold below a cap. So this price cap will benefit directly emerging and developing countries' economies, and it will be adjustable over time so that we can drive to market developments," Ursula von der Leyen.

According to the head of the European Commission, the introduction of the marginal price has 3 objectives.

  • Strengthening the effect of international sanctions against Russia;
  • Diminish Russia's revenues;
  • Stabilize the global energy market.

We remind you that Zelenskyy proposed introducing a cap price of $30 per barrel.

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