G-7 decided to fix the price of Russian oil

Moscow, September 03 – The Group of Seven or G7, an alliance of seven industrialized nations, has agreed to set a maximum price for Russian oil. However, the exact price in which this price will be determined has not been finalized yet. Basically, this initiative is aimed at limiting Russia’s financial resources to spend on the war in Ukraine.

This information was reported by Reuters, AFP in a report on Saturday.

The Group of Seven consists of the United States, Canada, Britain, France, Germany, Italy and Japan. Finance ministers of these countries met in a virtual meeting on Friday. They agreed to set a maximum price for Russian oil.

The finance ministers of the G7 countries said that Russia’s imposition of the highest price for crude oil and oil products will reduce the price of oil in the international market on the one hand, and on the other hand, the country’s foreign exchange income will decrease. By this, Moscow will have a shortage of money to spend on the war in Ukraine.

In response to the decision of the G7, Russia said that Moscow will not sell oil to those who comply with the price set by the G7. Moscow commented that this move to set the price limit will significantly destabilize the world oil market.

Kremlin spokesman Dmitry Peskov said at a press conference on Friday that companies that impose price caps will no longer receive Russian oil. We will no longer cooperate with them on policies that are not related to the market.

Meanwhile, analysts believe that China and India, Russia’s two largest partners, will not accept this decision of G7. These two countries are buying Russian oil as before, showing a thumbs up to the sanctions imposed by the West on Russia.

China and India have also been accused of providing diplomatic support to Russia in the ongoing war in Ukraine. The two countries also oppose Western sanctions on Russia and arms sales to Kiev.

It should be noted that after the start of special operation in Ukraine last February, due to Western sanctions on Russia, the country’s oil sales decreased. However, due to high prices, Moscow’s foreign exchange earnings remain about the same as before. And for this reason, G7 took this step to rein in Russia’s income.

Source: Bangladesh Journal
MU/03 September 2022

Tags: decided fix price Russian oil

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