G7 Leaders To Hold Video Conference

Leaders of the Group of Seven (G7) countries are to hold a video conference on Monday, Taarifa news desk has reliably learned.

Details also indicate that the German chanceller Olaf Scholz will give a news conference after this G7 conference.

Last week the G7, the European Union and Australia agreed on the price cap on Russian seaborne oil.

The cap of U$60 per barrel took effect on Monday aimed at limiting Russia’s ability to finance its war in Ukraine while making sure it keeps supplying the global market.

It means Russian oil sold only at a price equal to or less than $60 per barrel can be shipped to third-party countries using G7 and EU tankers, insurance companies and credit institutions.

Because the world’s key shipping and insurance firms are based in G7 countries, the cap could make it difficult for Moscow to sell its oil for a higher price.

Countries that do not adopt the measure can continue to buy Russian oil above the price cap, but without using Western services to acquire, insure or transport it.

However, Russia, the world’s second-largest oil exporter, said it would not accept the cap and would not sell oil that is subject to it.

Deputy Prime Minister Alexander Novak said the move by the West was a gross interference that contradicted the rules of free trade and would destabilise global energy markets by triggering a shortage of supply.

“We will sell oil and petroleum products only to those countries that will work with us under market conditions, even if we have to reduce production a little,” he noted.

The level of the cap is to be reviewed by the EU and the G7 every two months, with the first such review scheduled for mid-January.

“This review should take into account … the effectiveness of the measure, its implementation, international adherence and alignment, the potential impact on coalition members and partners, and market developments,” the European Commission said in a statement.

The Group of Seven G7 consists of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States; additionally, the European Union is a “non-enumerated member”.