The United Kingdom has urged its allies in the G7 to lower the price cap on Russian oil, aiming to increase pressure on Russian President Vladimir Putin to end the war in Ukraine. This issue became a key topic during the meeting of G7 finance ministers held in the Canadian town of Banff from May 20 to 22.
This is reported by Finway
It is worth noting that the European Union believes that measures related to the energy sector, particularly lowering the price cap on Russian oil, could have the greatest impact on Russia.
“I believe that the most important thing (for the future, 18th package of EU sanctions) is to lower the price cap on oil for Russia,”
said EU foreign policy chief Josep Borrell. She emphasized that energy resources are “an important source of income for Russia,” which fuels its economy, and called on the European Union to “exert some pressure in the energy sector.”
Additionally, OPEC+ is currently discussing the possibility of another increase in oil production in July. If a decision is made, it could amount to 411,000 barrels per day, marking the third consecutive increase. A final decision is expected to be made at the meeting on June 1. Following two previous such decisions, oil prices dropped to $63 per barrel.
Further reductions in oil prices could lead to a decrease in Russia’s oil revenues, which, in turn, opens up opportunities to weaken the Russian military machine and creates additional economic pressure on the aggressor.