Doubts about plans by G7 nations over Russian oil cost cap| MENAFN.COM

Monday, 15 August 2022 04:30 GMT

Doubts about plans by G7 nations over Russian oil cost cap


(MENAFN) Ben van Beurden, CEO of energy giant Shell, has expressed skepticism on proposals by the Group of Seven (G7) industrialized nations to set a cost ceiling on Russian oil in order to reduce Moscow's earnings from sales.

He claimed in an interview with Bloomberg on Wednesday that the system could only function if there was widespread involvement outside of Europe and the United States, “you can see all the flaws already.”

If not, " you will continue to just see what is currently happening, which is Russian crude will go to countries that are perfectly OK to still purchase Urals [Russia’s main crude export grade], for instance," he remarked.

Van Beurden asserts that as liquefied natural gas and oil supplies become more scarce, the world is about to enter a "turbulent period."

The CEO of Shell indicated that it could be difficult to replace the substantial amounts of Russian oil and gas that still enter Europe. According to Van Beurden, “there will be more LNG supply coming into Europe, but will there be a lot of extra new LNG supply to plug the gap? I don’t think so.”

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