the G7 announced a price cap on Russian oil


World Affairs

9/12/2022, 11:20:36 PM

The us treasury adeyemo:

“last week the G7 announced a price cap on Russian oil that will deny Russia revenue from its oil sales while putting downward pressure on global energy prices by keeping Russia’s oil on the market

The price cap adds a carveout to the EU’s sixth sanctions package to allow EU and G7 services like insurance to be used for shipments of Russian oil provided they are sold below a capped price. Even if Russia tries to get around the policy, the cap gives leverage to negotiate better prices even to countries that don’t formally join. Russia knows that—it’s why they are already offering steep discounts to try to get ahead of it. In short, the price cap is already working. This means low- and middle-income countries can keep buying Russian oil as long they pay a lower price, and energy prices for consumers in the U.S. and globally will benefit from this downward pressure on prices. Everyone wins but Russia.“ Adeyemo Treasury’s Office of Foreign Assets Control is releasing guidance to give service providers and others greater clarity on how to comply with the price cap.