2 Sep 2022 16:47

G7 seeking to establish 'broad coalition' of countries to impose price cap on Russian oil - statement

BERLIN. Sept 2 (Interfax) - The G7 countries have announced their intention to establish a "broad coalition" in order to impose a joint price cap on Russian oil, the G7 Finance Ministers said in a statement released on Friday.

"We seek to establish a broad coalition in order to maximize effectiveness and urge all countries that still seek to import Russian oil and petroleum products to commit to doing so only at prices at or below the price cap," according to the G7 Finance Ministers' statement.

The G7 Finance Ministers noted that the entire coalition would determine the price cap, saying that, "The initial price cap will be set at a level based on a range of technical inputs and will be decided by the full coalition in advance of implementation in each jurisdiction."

The G7 countries have reaffirmed their dedication to ending use of Russian oil on their markets, but have no intention to create barriers to other parties purchasing Russian oil at or below a price cap, the G7 said in the statement.

"We reaffirm our own measures to phase out Russian oil and products from our domestic markets and underscore that the price cap measure aims to relieve pressure on global oil prices and support oil-importing countries globally," the statement said.

The G7 countries are ready to support oil importers "by enabling continued access to Russian oil at or below the price cap," it said.

The finance ministers of the G7 countries call on oil exporters to boost production in order to reduce volatility on the energy resources market, the ministers said in the statement.

          "We continue to encourage oil-producing countries to increase their production to decrease volatility in energy markets," the statement said.