G-7, EU Agree on Price Cap for Seaborne Russian Crude Oil


Brussels/Washington, Dec. 2 (Jiji Press)–The Group of Seven major countries and the European Union on Friday decided on a plan to impose a 60-dollar-per-barrel price cap on seaborne Russian crude oil as an additional sanction against Russia over its invasion of Ukraine.

Australia announced its support for the fresh sanction, which will come into force on Monday. The sanction will not cover Russian oil transported by pipeline.

Insurance companies will be obliged not to provide insurance to ships transporting Russian crude oil traded above the ceiling, according to the decision by the G-7 and the EU. The G-7 countries are Britain, Canada, France, Germany, Italy, Japan and the United States.

With U.S. and European insurance companies effectively controlling the world’s marine hull insurance market, the new sanction is aimed at dealing a blow to Russia’s energy revenues, pundits said.

Meanwhile, the U.S. Treasury Department said that crude oil from the Sakhalin-2 oil and gas development project in Russia’s Far East, joined by Japanese companies, will not be subject to the price cap until the end of September 2023.

[Copyright The Jiji Press, Ltd.]

Jiji Press

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