G7 to keep Russian oil price cap at $60

The Group of Seven (G7) coalition has decided to keep a $60 per barrel price cap on seaborne Russian oil, despite calls by some countries for a lower price cap, Reuters reported on Monday citing a coalition official.

According to the official, the G7 and Australia made the decision to maintain the cap over the past few weeks after a review of the $60 price set in December.

On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force.

G7 nations, the EU and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at $60 a barrel. Moreover, starting February 5, 2023, similar restrictions on deliveries of petroleum products from Russia were enforced as the EU Council officially greenlighted the decision, in conjunction with the G7, to introduce a price ceiling on Russian petroleum products supplied by sea at $100 for premium oil and at $45 for discount.

Changing the oil price requires consent on behalf of all EU countries and G7 members.