Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

The G7 agrees to limit the price of Russian oil to reduce Moscow's income

The G7 agrees to limit the price of Russian oil to reduce Moscow's income

According to a statement published today, Friday, September 2, by the Group of Seven (G7), an agreement has been reached to establish a price limitation on Russian oil and other derivative products. This decision was made by the finance ministers of the United States, Germany, France, the United Kingdom, Italy, Canada and Japan.
The price limitation will effectively be carried out through a general ban on providing services that allow the maritime transport of these products of Russian origin. Transportation services will only be allowed if the oil and derivatives are purchased at a price equal to or less than that set by the coalition.

In their statement, the finance ministers of the G7 nations did not detail the price limit. They only indicated that the figure will be decided according to a range of technical details. “The price limit will be publicly communicated in a clear and transparent way”, a spokesperson said. These prices can also be revised if necessary, they added.

This measure is ‘specifically designed’ to reduce Russia’s income and its ability to finance the conflict with Ukraine while limiting the impact on global energy prices, stated the G7. Alexander Novak, Russia’s deputy prime minister, had already warned that should this measure be implemented then Russia would not export oil to any country that adheres to this price limitation.

“We seek to establish a broad coalition to maximize its effectiveness and we urge all countries that still seek to import Russian oil to commit to doing so at prices equal to or below the limit”, said the G7 statement.

According to data from the International Energy Agency (IAE), between March and July, Russia received €85,000 million from its oil and gas exports to the European Union alone, almost twice as much as in previous years.

Víctor Ruiz Ezpeleta, a professor at OBS Business School and an energy expert, pointed out that: “A maximum price tax measure will only be effective if all the participants agree or at least abide by it, but this does not seem to be the case. China and India do not seem to be up to the task, and they can continue to buy Russian oil benefiting from better prices or even resell it with a higher margin”.

“Russia is also not going to sit idly by and will play with supplies to try to damage the image of unity of the G7 so that any internal disagreement will be seen as a victory in Moscow. Since the EU is determined not to buy any more Russian oil from 2023, we will see in these final months what impact it has on the energy markets”, he added.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
U.S. Tech Stocks Slide on AI Boom Concerns
White House Confirms Talks Over Intel Stake
Trump Suggests U.S. Could Support Ukraine ‘By Air’
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×