G7 to Consider Lowering Price Cap on Russian Oil to $30 per Barrel

During the G7 summit, which will take place in Canada from June 15 to 17, leaders will discuss the possibility of lowering the price cap on oil from the Russian Federation to $30 per barrel. This was reported by Alexander Khara, an expert from the Center for Defense Strategies, who noted that this issue will be one of the main topics of the meeting.

This is reported by AgroReview

Potential Pressure on Russia and the Role of Saudi Arabia

“We expect more pressure on the Russian Federation. Foreign Minister Andriy Sybiha mentioned $30 per barrel as the new price cap (currently it is $60). I don’t know if there will be agreement on this at the G7 (by the end of the summit), but it is interesting that among the invitees is also the Crown Prince of Saudi Arabia, Mohammed bin Salman. Mohammed bin Salman is the person who can easily increase oil production and thus, even without agreements on a significant price reduction, lower it,” Khara noted.

According to the expert, the participation of Crown Prince Mohammed bin Salman of Saudi Arabia in the summit is particularly significant, as he is capable of influencing the global oil market by increasing production and consequently lowering prices even without formal agreements.

European Union’s Position on Lowering the Cap

Alexander Khara believes that even if an agreement to lower the price cap to $30 is not reached, even a partial reduction of this limit will positively impact Ukraine. Reducing Russia’s revenues will force the Russian economy to more actively utilize its financial reserves, which will weaken the country’s ability to finance the war.

The head of the EU’s foreign policy service, Kaja Kallas, emphasized that the European Union is capable of independently making decisions to lower the price cap on oil from Russia, even if the United States does not support such an initiative.