G7 leaders meet in Germany to discuss plans to reduce Russia’s revenue from oil exports amid a sharp increase in energy prices.
Leaders of the Group of Seven (G7) discussed Russia’s plan to cap oil prices to pressure Moscow, which is benefiting from soaring energy prices, and cut off financial means support the invasion of Ukraine.
The United States has proposed limiting prices to be decided by consuming countries, a proposal discussed by G7 leaders on Sunday at a summit in the Bavarian Alps.
Western nations rallied around Kyiv when Russia invaded Ukraine in February, but more than four months after the war, that unity is being tested as inflation soars and energy shortages flare up again. with their citizens.
Criticized by Ukraine for not going far enough to sanction Russia, G7 leaders are having “really constructive” talks on gender levels, a German government source told Reuters. possible price limit for Russian oil.
“We are on a good path to reach an agreement,” the official said.
A French presidential official said Paris would push for a cap on oil and gas prices and was ready to discuss the US proposal.
However, he said the G7 needs to work towards maximum oil prices and this requires buying by oil producers in the Organization of the Petroleum Exporting Countries and its allies in the OPEC+ group, including even Russia.
“We need discussions with OPEC+ and producing countries to achieve this,” the official said.
The European Union, which plans to ban most Russian oil imports from the end of the year, has reservations about the US pushing for broad oil price caps or “price exceptions” to limit Moscow’s energy revenues.
A price exception could work through a mechanism that restricts or prohibits the insurance or financing of Russian oil shipments above a certain level.
It could prevent a spillover to low-income countries already struggling with high food and energy costs.
European Council President Charles Michel also said G7 leaders would discuss a technical mechanism that would impact oil price caps through oil-related services and export insurance.
But Michel said the matter would need to be handled with care or risk backfired.
“We are ready to make decisions together with our partners, but we want to make sure that what we decide will have a negative impact. [on Russia] and not a negative effect on ourselves. “
Biden praises the unity of the West
At the start of the bilateral meeting, US President Joe Biden thanked German Chancellor Olaf Scholz for showing leadership in Ukraine and said that Russian President Vladimir Putin had not broken their unity.
Scholz has faced criticism at home and abroad for Russia’s handling of the invasion of Ukraine.
“We can get through all of this and get stronger,” Biden said.
“Because from the very beginning Putin believed that somehow NATO and the G7 would separate. But we didn’t and we won’t.”
At the start of the meeting, the four G7 members announced plans to ban Russian gold imports as part of an effort to tighten sanctions on Moscow.
US, UK, Canada and Japan will ban Import of gold from Russia. France also supported the move.
The UK says the ban is aimed at wealthy Russians who have bought safe-haven bullion to reduce the financial impact of Western sanctions. Last year, Russia’s gold exports were worth $15.45 billion.
“The measures we announced today will hit Russia’s oligarchs directly and hit the heart of Putin’s war machine,” British Prime Minister Boris Johnson said in a statement. .
“We need to starve the Putin regime for its financial resources. The UK and our allies are doing just that.”
