Several G20 countries have flagged their intention to comply with the price cap imposed on Russian oil despite not being a formal part of it, a senior EU official told journalists in Brussels
BRUSSELS (Pakistan Point News / Sputnik - 03rd December, 2022) Several G20 countries have flagged their intention to comply with the price cap imposed on Russian oil despite not being a formal part of it, a senior EU official told journalists in Brussels.
On Friday, the European Union reached an agreement on setting a price cap on Russian oil at $60 per barrel. The agreement reportedly provides for a review mechanism to keep the price cap at 5% below the market value. The G7 nations and Australia also agreed to set a $60 price ceiling on oil from Russia, which will enter into effect on December 5.
The EU gauged "positive signals" from some developing economies, including a number of G20 countries, which seek to implement the oil price cap, the senior official said, without specifying these nations.
The official said the countries outside the scheme will be motivated to comply with the price ceiling given the EU's critical role in providing financial, transportation and brokering services. As Brussels no longer provides them for Russian oil deliveries, importers will be forced to seek alternatives, which could be a tall order both in the short and long term.
Furthermore, the countries that join the price cap voluntarily may profit from low prices of Russian oil, the official said, adding that Moscow is already being pressured by its partners to discount the Urals oil brand.
The senior official also shed some light on how the price cap will be implemented, saying that each EU member state will be responsible for itself and will report to the European Commission.