The G7 agreed on a price ceiling for Russian oil

The G7 countries and Australia have agreed on a ceiling on the price of Russian oil per barrel, which will be $60. Previously, the same limit was set by the countries of the European Union.

The price ceiling means that from December 5, 2022, 27 EU countries, as well as the UK, USA, Canada, Japan and Australia, will provide services related to Russian tanker oil only if it was purchased at a price of $60 per barrel or below. The services include, in particular, compulsory insurance for sea transportation of fuel.

Countries have imposed price ceilings to cut Russia's revenues, which help it continue the war in Ukraine, while at the same time preventing a cut in supplies and a surge in world oil prices. The United States and the European Union have refused to buy Russian tanker oil, so the measures are "especially important for low- and middle-income countries that have been hit hard by the consequences of Russia's war in Ukraine."

The cap price set is high enough to make it profitable for Russia to sell it on the world market, the countries said in a statement. Countries allow that they will revise and adjust the price ceiling if necessary. Also in their statement it is said that from February 5, 2023, limit prices will be set for Russian oil products.

Russia has repeatedly promised not to sell below-market oil to countries that impose a ceiling. Now oil of the Russian brand Urals in the world market costs a little more than 69 dollars per barrel. At the same time, traders note that Asian countries - in particular, India and China - buy Russian oil at a big discount - up to 30%.