Sunday, June 11, 2023
HomeHeadlinesG7 Weighs Russia Oil-Price Cap Via Insurance and Shipping Ban


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

G7 Weighs Russia Oil-Price Cap Via Insurance and Shipping Ban

Group of Seven nations are discussing a cap on the price of Russian oil that would work by imposing restrictions on insurance and shipping, according to people familiar with the matter.

The potential mechanism would only allow the transportation of Russian crude and petroleum products sold below an agreed threshold, the people said. Discussions among G-7 leaders and officials are ongoing, and an agreement has yet to be reached, they said.

President Vladimir Putin’s invasion of Ukraine and its economic fallout are the key topics under discussion at a three-day summit under way in the Bavarian Alps. G-7 states are seeking ways to limit the Kremlin’s energy revenue while mitigating the impact on their own economies amid surging inflation and efforts to curb a reliance on Russian oil and gas.

While a mechanism is on the agenda and the concept could be agreed in principle, it is not yet clear whether leaders will be able to pin down specific details, such as the level of the price cap, before the summit’s end, two of the people said.

European Council President Charles Michel confirmed that leaders were planning to discuss the proposed cap in detail, but that there were “many challenges” to be overcome.

“We are ready to take a decision together with our partners, but we want to make sure that what we decide will have the negative effect on Russia and not a negative effect on ourselves,” Michel told reporters at the summit.

A German government official told reporters on Saturday that while the questions that needed solving were not trivial, the group was at least on a path to finding an agreement. The US is also confident a resolution will be found, a senior Biden administration official said.

The European Union agreed last month to introduce a ban on insurance related to the transportation of Russian oil, and any move to add on a waiver would require the backing of all 27 member states. Some officials have raised concerns about re-opening that legal text as it took weeks to agree in the first place. Still, incorporating a new transportation ban in any mechanism could help to soften objections linked to weakening the insurance ban.

A mechanism linked to the shipment of oil could be more palatable to other buyers of Russian supplies, such as India, which would be able to insure and transport their shipments provided the price was in line with any agreed threshold. Prime Minister Narendra Modi is also due to attend the G-7.


Related Posts


Finance & Economy
Shipping News

Trafigura publishes 2023 interim results showing a strong performance

Trafigura, a market leader in the global commodities industry, released its 2023 Interim Report today for the six-month period ended 31 March 2023. The results...

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

Celestyal Participates In Promotion Of The Tourist Destination Of Central Macedonia

Celestyal, the award-winning, number one choice for travellers to the Greek Islands and the...

Capesize, panamax gains drive Baltic index higher

The Baltic Exchange’s main sea freight index rose for a fourth straight session on...

Baltic rises to over 3-month peak on firm demand for larger vessels

The Baltic Exchange’s main sea freight index rose on Wednesday to scale its highest...

Baltic index logs best day in nearly 3 months

The Baltic Exchange’s main sea freight index posted its biggest single-day gain since mid-March...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Iraklio port tender set for another delay

The opening of the binding financial offers for 67% of Iraklio Port Authority had been scheduled for Thursday, but this is no longer expected...

APM Terminals extends concession of Kalundborg container terminal

APM Terminals has reached an agreement with the Port of Kalundborg to extend the concession of Kalundborg container terminal by 10 years to 2033. In...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

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...