G7 to strentgen price cap control on Russian oil ahead of Ukraine war anniversary – Nikkei

The Ministry of Finance of Japan and agencies from other G7 countries plan to strengthen the rules for limiting prices for Russian oil importers from February 20, Nikkei writes.

From that date, receiving a declaration and vefification from carriers and insurance companies that the price of Russian oil does not exceed the set threshold of $60 per barrel will be mandatory.

This document is valid for the entire period of the insurance or transportation contract.
The Ministry of Finance of Japan proposed to strengthen these rules and oblige to show this document for each shipment.

Declarations will not be required if the prices are specified in the contract. If the authorities suspect the importer of exceeding the price threshold, they can demand more information about transport costs and insurance premiums.

From December 5, 2022, the G7 countries banned their companies from providing services such as transportation or insurance for the sea transportation of Russian oil if it sells for more than $60 a barrel. Since then, the price ceiling has never been revised.

The first review of the upper limit of Russian oil prices was supposed to take place in February, but it was postponed to March 2023. In April, the G7 decided that there was no reason to change the restrictions yet.

Ukraine insists on lowering the threshold to $30-35 per barrel .

On November 16, the United States imposed sanctions on three tankers and three shipping companies from the UAE. In addition, the United States is checking 100 tankers from 30 countries for violations of sanctions against Russia.