Sunday, May 28, 2023
HomeHeadlinesG-7 Negotiators Put Russia Oil Price Cap on Agenda for Leaders

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

G-7 Negotiators Put Russia Oil Price Cap on Agenda for Leaders

Group of Seven negotiators agreed that discussions on a potential price cap on Russian oil had progressed enough to send the issue to leaders to discuss at their summit in Germany, according to people familiar with the matter.

The negotiators known as sherpas held what one official described as “intense” talks on the matter in the Bavarian Alps before the summit began Sunday.

While there are many issues still to be ironed out, they reached an understanding that leaders should have a formal discussion about a price cap, the person said, asking not to be identified discussing private matters.

Such a price mechanism would set an upper limit on imports of oil from Russia, which would be imposed unilaterally by each participating country and prevent Russia selling at a higher price. For European nations, it’s also a way to potentially defray inflation driven by energy prices as they grapple with the economic fallout of Russia’s invasion of Ukraine.

While Italy is among those championing the move — the US is also pushing for it — some European nations have been wary given it could potentially require the painful reopening of already-agreed European Union texts on sanctions against Russia. That would need the agreement of all 27 EU member states and be very difficult to do.

It’s also unclear how key buyers of Russian crude such as China and India could be coaxed into complying with a price cap.

One idea being floated by the US would be to allow them to keep accessing shipping insurance on oil cargo as long as they agree not to pay more than a certain price for the oil on board. The EU has agreed to ban insurance for the transportation of crude and petroleum products from Russia.

A German government official said the questions that needed solving were not trivial but the group was at least on a path to finding an agreement. The US was confident a resolution would be found, a Biden official said.

Asked about the proposal on Air Force One as President Joe Biden flew to Europe, National Security Council spokesman John Kirby said leaders were looking for ways to minimize the hit from rising oil prices.

But with key details still being worked on, another G-7 official said it remained unclear whether the leaders would be in a position to back the concept.

G-7 states are eager to find a way to limit the Kremlin’s energy revenue while mitigating the impact on their own economies from steps to quickly curb their reliance on oil and gas from Russia.

While France is not opposed to the proposal for a price cap it is looking for a broader discussion on maximum prices with all oil producers, a senior official at the French presidency said, adding that EU sanctions would have a stronger impact on Russia than any oil price cap.

The official, who asked not to be identified, suggested G-7 should discuss a broad price shield not just on oil but also gas in order to contain inflation.

Source: Bloomberg

Related Posts

Video

Finance & Economy
Shipping News
Ports

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Dorian LPG sees Q1 revenue more than double year-on-year

Dorian LPG reported its financial results for the three months and fiscal year ended March 31, 2023. Highlights for the Fourth Quarter Ended March 31, 2023 Revenues of $133.6 million.Time...

Navios Holdings Posts $14.5 Mln Net Income in Q1

Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake...

BW LPG posts ‘strongest quarterly performance on record’

BW LPG has recorded its ‘strongest quarterly performance on record’ in the first three months of 2023. The company was boosted by strong exports...

ONE, Wan Hai agree to pay civil penalties to FMC

Ocean Network Express (ONE) will pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for...

Nikolaus H. Schües elected BIMCO President

BIMCO has elected Nikolaus H. Schües , CEO and owner of Reederei F. Laeisz,...

Baltic Dry Bulk Index Ends Worst Day In Over Three Months

The Baltic Exchange’s main sea freight index declined the most since mid-February on Thursday...

Maritime UK appoints new Chief Executive Officer

Maritime UK, the umbrella organisation for the UK’s maritime sector, has appointed Chris Shirling-Rooke...

Baltic dry bulk index extends slide for 10th straight session

The Baltic Exchange’s main sea freight index of shipping rates for dry bulk commodities...

Baltic index hits over two-month trough on lower rates across vessels

The Baltic Exchange’s main sea freight index slumped to its lowest level in over...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...