The G7 Group intends to keep the cap on the price of oil from Russia at $60

The G7 countries have opposed lowering the cap on the price of Russian oil, writes The Wall Street Journal (WSJ), citing informed sources. US President Joe Biden notified the head of the European Commission (EC) Ursula von der Leyen.

The official meeting between Biden and von der Leyen took place on March 10 in the Oval Office of the White House. The American president also told the head of the European Commission that Washington and its allies are not willing to adjust the sanctions on Russian oil.

The EC forwarded the position of the G7 to the EU countries, which on 15 March started discussions on the revision of the maximum price. Countries The European Union has not yet reached a consensus: Estonia, Lithuania and Poland are demanding a reduction in the maximum price to $ 51.45 per barrel, Bloomberg wrote on the eve. Other EU countries propose a limit of USD 55. However, the approval of the G7 countries will also be required to implement the changes.

In an interview with WSJ, a representative of the European Commission denied that representatives of EU countries discussed Biden’s statement at the March 15 meeting.

Washington’s refusal to lower the price cap stems from the fact that the United States is not yet ready to jeopardize Russian oil supplies. Such a decision could lead to an increase in the global cost of energy resources.

The cap on the price of Russian oil is now working exactly as it should, U.S. Treasury officials who have drawn up a plan to contain its cost have told the WSJ. On the one hand, this decision made it possible to keep Russian oil on the market, and on the other hand, it limited the Kremlin’s ability to finance the war in Ukraine.

The maximum price applicable from December 5 is USD 60 per barrel. It prohibits Western companies from insuring and transporting Russian barrels, which cost more. As a consequence of the restrictions, the prices of oil from Russia collapsed: the average price of the Russian Ural variety in January and February amounted to approximately USD 50 per barrel, and its discount to Brent reached almost 40%.

Deutsche Bank estimates that oil rebates alone cost the Russian economy $300 million in lost revenue every day.