At the upcoming G7 summit, scheduled to take place from June 15 to 17 in Canada, one of the key topics will be the possibility of lowering the price cap on Russian oil to $30 per barrel. The current limit stands at $60 per barrel.
This is reported by Finway
Discussion on the Impact and Role of Saudi Arabia
As reported by Alexander Khara, an expert at the Center for Defense Strategies, the issue of additional pressure on the Russian Federation is actively being considered. There is particular interest in the participation of Saudi Arabia’s Crown Prince Mohammed bin Salman at the summit, who could potentially influence the oil market by increasing production, which could help lower global prices without formal agreements between countries.
“We expect more pressure on the Russian Federation. Foreign Minister Andriy Sybiha mentioned $30 per barrel as a new price cap (currently it is $60). I don’t know if there will be agreement on this at the G7 (by the end of the summit), but it is interesting that among the invitees is also the Crown Prince of Saudi Arabia, Mohammed bin Salman. Mohammed bin Salman is someone who can easily increase oil production and thus, even without agreements on a significant price reduction, lower it,”
According to the expert, it is unlikely that the price cap will be reduced by half immediately. However, even a slight decrease in this limit could positively impact Ukraine. It would force the Russian Federation to more actively utilize its remaining financial reserves.
Position of the European Union
EU foreign policy chief Josep Borrell emphasized that the European Union is capable of making decisions on its own regarding the reduction of the price cap on oil from Russia, even in the event of disagreement from the United States. Thus, the EU could initiate new sanctions measures regardless of Washington’s position.