Tokyo: G7 cap will cut Russian oil prices in half
(MENAFN) According to Japanese Prime Minister Fumio Kishida, the Group of Seven's planned price ceiling on Russian oil will force Moscow to sell petroleum at roughly half its current purchasing price.
The method was meant to ensure that Russian oil “will not and cannot be bought at a higher price” than the predetermined barrier, Kishida said during a stump speech in Tokyo on Sunday, according to Kyodo News.
He was referring to an unified communiqué issued following a G7 conference in late June. Members of the organization said at the time that shipment of Russian crude and petroleum products may be halted unless the fuel was acquired at or below a specific price.
The oil price cap is part of an extraordinary set of sanctions imposed by the West on Russia in response to its military incursion in neighboring Ukraine. Preventing Russian oil from accessing global markets would cut the country's export earnings significantly.
“We must show that aggression comes with a heavy price,” Kishida stated, noting that Russia’s offensive in Ukraine had sent prices rising.
During the G7 conference in southern Germany, the Japanese prime minister said he called on other world leaders to work together to combat growing expenses.
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