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27 Jun, 2022 12:30

Only one way for Russian oil price cap to work – Germany

Enough countries have to take part for the plan to be realistic, according to German economy minister
Only one way for Russian oil price cap to work – Germany

Limiting Russian oil revenues would only be possible if enough countries participated in the scheme, German Economy Minister Robert Habeck said on Monday ahead of a meeting of EU energy ministers in Luxembourg.

The price caps proposed by the US for the purchase [of Russian oil] are only a good idea if enough countries participate in this. Let's see how they will move forward,” Habeck told reporters, as cited by RIA Novosti.

The prospect of establishing a threshold above which Russian oil would not be bought was revealed on Sunday, when reports, citing government sources, emerged that the heads of the Group of Seven (G7) leading Western economies were holding “constructive” talks on the matter.

The measure had been floated some time earlier by US Treasury Secretary Janet Yellen, who suggested that capping the price of Russian oil exports would help battle global inflation and the fuel price surge, and also reduce Russia’s oil revenue, which helps fund its military operation in Ukraine.

The conflict in Ukraine has led to a full-fledged sanctions war against Russia, which among other things has targeted the country’s energy exports. The US, Canada, and UK have already banned Russian oil, while the EU has imposed an embargo on Russian crude shipments delivered by sea. This year’s three-day G7 summit is focusing on a coordinated response to the Russia-Ukraine conflict, with new sanctions expected to be announced this week.

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