Price limits for Russian oil, which the G7 countries have agreed to introduce, are being discussed in the range from $40 to $60 per barrel. This was reported on July 6, citing unnamed sources. Bloomberg.
The range under discussion extends from what is considered the marginal cost of production in Russia to the price of oil before the start of the military operation in Ukraine. According to a US presidential administration official, Washington believes the $40 price cap is too low. The White House fears that ill-conceived restrictions could lead to a sharp rise in world oil prices.
According to the agency, the G7 countries are considering several ways to limit Russia’s oil revenues with minimal consequences for their own economies. Possible options include a ban on insurance and transport services for transporting oil if it is not purchased at a price lower than the agreed one.
The G7 countries announced plans to impose restrictions on the cost of Russian oil on June 28 at a summit in Bavaria. The G7 includes Great Britain, Germany, Italy, Canada, USA, France, Japan.