US, allies discuss capping Russian oil at $40-$60 a barrel to cut war financing

    WORLD  07 July 2022 - 09:17

    The US and its allies have discussed trying to cap the price on Russian oil between $40 and about $60 a barrel, according to people familiar with the matter.

    Allies have been exploring several ways to limit Russia’s oil revenues while minimizing the impact on their own economies in discussions that began in the run-up to the Group of Seven summit, Bloomberg reported on July 6.

    At the summit in Germany on June 28 leaders agreed to explore options to cap prices by banning insurance and transportation services needed to ship Russian crude and petroleum products unless the oil is purchased below an agreed price.

    A more specific threshold would depend on market conditions when a cap is agreed and those could change significantly. Before Monday’s mini-rout in headline oil prices, Russian crude was probably trading around the $80-a-barrel mark. Information about transactions in the nation’s barrels has become less visible since the invasion.

    The range spans from what is believed to be Russia’s marginal cost of production and the price of its oil before the Feb. 24 invasion of Ukraine, the people said. The Biden administration considers a cap of $40 to be too low, two of the people said. The aim is to cut Moscow’s revenue for its war in Ukraine but the risk is that poorly executed measures would lead to a spike in oil prices.

    The Biden administration has so far steered away from deploying extra-territorial secondary sanctions to enforce restrictions imposed on Russia and such moves are usually seen with concern among some European allies. Their use alongside a price cap is likely a measure of last resort, according to one of the people.   

    Biden administration officials are having multiple meetings a week on the price cap now, trying to push it into reality, one official said. The effort will intensify in the coming weeks, the official said.

    Spokespeople for the White House National Security Council didn’t immediately comment on the discussions.

    While oil caps got a mention in the G-7 communique, there is a lot of skepticism that an agreement will be reached in the near future as the idea still needs fleshing out and there are a number of obstacles. Nevertheless, discussions are ongoing to try to nail down a concrete proposal.

    Caliber.Az




Read also

Nobel Prize season arrives amid disrupted peace in Europe

30 September 2022 - 20:48

Bloomberg: Biden administration readies new sanctions targeting Iran’s oil exports

30 September 2022 - 20:39

Indonesia authorizes first domestic COVID-19 vaccine

30 September 2022 - 19:50

Schwarzenegger vows to fight hate during Auschwitz visit

30 September 2022 - 19:01

Lithuania boosts defence budget to buy HIMARS, trucks, drones

30 September 2022 - 19:15

Putin signs decree to fast-track citizenship for foreigners in Russian army

30 September 2022 - 19:40
ADVERTS
Latest news

    Russian oligarch charged with violating US sanctions

    01 October 2022 - 02:30

    Anti-war novel banned by Nazis gets Netflix revival

    01 October 2022 - 02:00

    European woman takes command of International Space Station for first time

    01 October 2022 - 01:30

    US-China tech fight leaves global losers

    01 October 2022 - 01:00

    Russia safely returns three cosmonauts from International Space Station

    01 October 2022 - 00:32

    New York state to adopt California 2035 EV rules

    01 October 2022 - 00:04

    Google to build its first cloud region in Greece

    30 September 2022 - 23:30

    Germany overwhelmed by migrants, 12 of 16 federal states begin blocking refugees

    30 September 2022 - 23:00

    Iran arrests popular protest singer

    30 September 2022 - 22:33

    Astana to host three international forums in mid-October

    30 September 2022 - 22:00

    Albanian PM: Turkish Bayraktar drones to be put into service very soon

    30 September 2022 - 21:30

    President Ilham Aliyev meets with representatives of leading business communities of Bulgaria in Sofia

    PHOTO

    30 September 2022 - 20:59

    Shusha, Veliko Tarnovo sign MoU on sister city relationship

    30 September 2022 - 20:54

    Nobel Prize season arrives amid disrupted peace in Europe

    30 September 2022 - 20:48

    Bloomberg: Biden administration readies new sanctions targeting Iran’s oil exports

    30 September 2022 - 20:39

    President Aliyev: Time has come to open SOCAR office in Bulgaria

    Full text

    30 September 2022 - 20:15

    Azerbaijan unveils best exporters

    30 September 2022 - 20:12

    Russian ambassador summoned as Britain imposes new sanctions on Moscow

    30 September 2022 - 19:59

    Indonesia authorizes first domestic COVID-19 vaccine

    30 September 2022 - 19:50

    Putin signs decree to fast-track citizenship for foreigners in Russian army

    30 September 2022 - 19:40

    Podolyak: Russians to ask for withdrawal from Liman

    30 September 2022 - 19:38

    Azerbaijani, Bulgarian presidents hold joint press conference

    UPDATED/PHOTO

    30 September 2022 - 19:20

    Lithuania boosts defence budget to buy HIMARS, trucks, drones

    30 September 2022 - 19:15

    Schwarzenegger vows to fight hate during Auschwitz visit

    30 September 2022 - 19:01

    Azerbaijani arm wrestler becomes world champion

    30 September 2022 - 19:00

    Ukraine accelerates NATO membership bid

    30 September 2022 - 18:46

    Will Russia attack undersea internet cables next?

    Analysis by Politico

    30 September 2022 - 18:45

    Japan to pay up to $320M for US company's chip production

    30 September 2022 - 18:27

    Russian leader slams West’s dictatorship

    30 September 2022 - 18:20

    US to announce sanctions against Russia over annexation of four regions

    30 September 2022 - 18:19

    Turkish Armed Forces neutralize terrorists in Syria

    PHOTO

    30 September 2022 - 18:11

    Hulusi Akar: Türkiye to always support Azerbaijan in right cause

    30 September 2022 - 17:55

    US issues new sanctions on alleged Iran sanctions evaders

    30 September 2022 - 17:45

    Analytical Centre: West eyes to make peace between Armenia, Azerbaijan soon

    30 September 2022 - 17:40

    Four treaties on admission of Russia’s new territories signed

    30 September 2022 - 17:27

    ICGB authorised to transport natural gas along Gas Interconnector Greece–Bulgaria

    30 September 2022 - 17:27

    President Aliyev: "Azerbaijan, Bulgaria - strategic partners"

    Details of meeting

    30 September 2022 - 17:21

    Rights group calls on Fifa to ban Iran from World Cup over women's rights

    30 September 2022 - 17:15

    Moscow to view strikes on new territories as act of aggression against Russia - Kremlin

    30 September 2022 - 17:10

    Graduation ceremony of commando officers takes place

    PHOTO

    30 September 2022 - 17:10

    Putin: Russia not seek to restore Soviet Union

    30 September 2022 - 17:00

    Ambassador: Iranian companies to start working in liberated territories

    30 September 2022 - 16:58

    Azerbaijan toughens punishment for illegal money transfers abroad

    30 September 2022 - 16:45

    "West not ready for drastic steps against Baku"

    Hraparak reveals details of Pashinyan's closed-door meeting

    30 September 2022 - 16:38

    Sweden lifts arms embargo on Тürkiye

    30 September 2022 - 16:36

All news