Great Britain has urged G7 member countries to lower the price cap on Russian oil in order to increase economic pressure on the Russian authorities and compel them to cease their aggression against Ukraine. This issue became one of the key topics during the meeting of G7 finance ministers held in the Canadian city of Banff from May 20 to 22.
This is reported by Business • Media
EU Considers Energy Sanctions as an Effective Tool
The European Union believes that restrictions in the energy market, particularly lowering the price cap on oil from Russia, could have the most significant impact on the aggressor’s economy. EU foreign policy chief Josep Borrell emphasized:
“I believe that the most important thing (for the future, 18th, package of EU sanctions) is to lower the price cap on oil for Russia”.
According to him, revenues from energy exports are a critical source of funding for the Russian economy, so the European Union must focus its efforts on increasing pressure in the energy sector.
OPEC+ Considers Increasing Oil Production
Meanwhile, OPEC+ countries plan to discuss another increase in oil production in July, which could amount to 411,000 barrels per day for the third consecutive month. A decisive meeting will take place on June 1. As a result of two previous decisions, oil prices have already dropped to $63 per barrel.
Experts note that further declines in oil prices could significantly reduce Russia’s revenues from energy exports. This, in turn, will weaken funding for Russia’s military actions and intensify economic pressure on the aggressor country.