US says other countries considering joining G7 plan to cap Russian oil price

By: News Team

Published on:

Importing countries are considering joining the G7 plan to limit the price of Russian oil, US Treasury Undersecretary Wally Adeyemo said on Thursday, adding that the group will issue rules in this regard in the coming days.

Adeyemo, in an interview with Yahoo! News also said that India had agreed to continue talks on whether to join the price-cap initiative and that Washington hoped China would consider it as well.

The rules will tell importers how to use financial products to ship Russian oil, as long as the price is below the agreed limit, it added.

If the price were to exceed the oil price cap, which has not yet been set, Russia would have to find “other, more expensive ways to ship its oil,” Adeyemo said.

The group of seven major economies, made up of Germany, Canada, the United States, France, Italy and the United Kingdom, agreed on Friday to impose a cap on the price of Russian oil.

Adeyemo did not disclose the target price of the cap, but said it should be effective, even if India and other oil-importing countries do not join, as it would create more transparency and put those countries in a better position to negotiate lower prices with Russia.

“We are going to set the price of oil above Russia’s production price. We are going to give them the possibility to use the services of the G7 to sell their oil, as long as it is sold below the maximum price,” he said, adding that this strategy was beginning to bear fruit.

“We have already seen that Russia is negotiating with some countries prices as low as 30% off the current price of oil,” he said. She did not give details or identify the countries that had expressed an interest in joining.

Leave a Comment