During the G7 summit, which will take place from June 15 to 17 in Canada, one of the key issues will be the consideration of lowering the price cap on Russian oil to $30 per barrel. Currently, this cap stands at $60.
This is reported by Бізнес • Медіа
Possible Changes to the Sanctions Mechanism
According to Alexander Khara, an expert at the Center for Defense Strategies, such a decision could become a new tool for increasing economic pressure on the Russian Federation. He notes that the final agreement of the G7 countries on this issue remains uncertain; however, among the invitees to the summit is Saudi Arabia’s Crown Prince Mohammed bin Salman. His participation could significantly influence the situation, as Saudi Arabia has the capacity to increase oil production and thus affect the market price of this resource.
“We expect more pressure on the Russian Federation. Foreign Minister Andriy Sybiha mentioned $30 per barrel as a new price cap (currently it is $60). I don’t know if there will be agreement on this from the G7 (by the end of the summit), but it is interesting that among the invitees is also Saudi Arabia’s Crown Prince Mohammed bin Salman. Mohammed bin Salman is someone who can easily increase oil production and thus, even without agreements on a significant price reduction, lower it,” Khara noted.
Position of the European Union
Experts believe that even a slight reduction in the price cap will positively impact Ukraine’s economic situation, as Russia will be forced to more actively utilize its remaining financial reserves. At the same time, the head of the EU’s foreign policy service, Kaja Kallas, emphasized that the European Union has the ability to independently decide to lower the price cap on Russian oil, even if the United States does not support such an initiative.