G7 countries plan to set two ceilings of oil prices with Russian Federation: what does it mean

The Great Seven also plans to limit the prices of Russian diesel, kerosene and fuel fuel to cut Russia further. In February 2023, G7 countries can set two ceilings of oil and petroleum products from the Russian Federation. About it reports Reuters, referring to the words of the official representative of the coalition. The publication states that from next month, "Big Simka" can introduce a separate ceiling for prices for products that are traded with a bonus.

A separate marginal price can be set for Russian oil products that are traded at a discount. In addition, since February 5, 2023, G7 will impose price restrictions on products from Russia as diesel, kerosene and fuel oil. These measures are intended to further reduce the revenues of the Russian Federation from energy trade. The publication states that setting the ceiling of oil prices is much more difficult than oil.

This is due to the fact that there is a large number of oil processing products, and their cost is often caused not by the place of production, but by where they are purchased. According to the official who wanted to remain anonymous, diesel and kerosene are usually traded with a premium compared to raw oil. In this case, the fuel oil is often sold at a discount. Nevertheless, G7 can put two ceilings of prices for Russian goods.

Recall that the Great Seven Coalition, together with the European Union and Australia, introduced a ceiling of prices for Russian oil in the amount of $ 60 per barrel from December 5, 2022. In case of violation of the mentioned rule, individuals or companies may be included in the sanctions list.