FirstFT: G7 discuss oil export price cap in bid to hurt Russia
G7 leaders are seeking a deal to impose a ‘price cap’ on Russian oil as the group works to limit Moscow’s ability to finance its war in Ukraine.
Talks on the idea were due to continue last night at the luxury resort of Schloss Elmau in the Bavarian Alps, where leaders want to enlist a range of countries beyond the G7 to cap the price paid for Russian oil.
They hope a cap would limit the benefits to the Kremlin war machine from soaring crude prices while cushioning the impact of rising energy prices on Western economies.
The idea has been heavily promoted by the United States and recent comments from German officials suggest Berlin is also considering the idea.
The caps will be debated today with a wider group as the leaders of Germany, the United States, the United Kingdom, France, Italy, Japan and Canada are joined by countries “partners” invited to the summit. These include India, which has become a big buyer of discounted Russian oil since the invasion of Ukraine, as well as Argentina, South Africa, Senegal and India. ‘Indonesia.
Charles Michel, President of the European Council, said the EU was ready to decide with its partners on a price cap, but stressed the need for a “clear vision” and awareness of the possible effects of training. “We want to make sure the goal is to target Russia and not make our lives more difficult and complex,” he said.
A senior German official said “intensive discussions” were underway on how a cap would be implemented and work with Western and Japanese sanctions. “The issues we need to resolve are not trivial, but we are on the right track to reach an agreement,” he said.
Last month, the EU agreed to a phased ban on maritime shipments of Russian oil while temporarily allowing crude pipeline deliveries to continue. The US has already banned imports of Russian oil and the UK plans to phase them out by the end of this year.
Thanks for reading FirstFT Asia. To start your week, here is the rest of the news of the day. — Sophie
Five other stories in the news
1. Russian missiles hit Kyiv as G7 leaders meet in Germany Residential buildings in the central Shevchenkivsky district of Kyiv were hit by Russian missiles yesterday morning. The new attacks came as more Western artillery is being delivered to Ukraine to help repel the Russian offensive in the east of the country.
2. Major economies risk falling into a high inflation trap The Bank for International Settlements warned yesterday that major economies are moving closer to a world where rapid price increases dominate daily life and are difficult to suppress. The BIS advised central banks not to hesitate to inflict short-term pain and even recessions to prevent them.
3. Japan’s top chipmakers brace for engineer shortages The biggest semiconductor producers from Toshiba to Sony are warning that the government’s efforts to revive its domestic chip industry are threatened by a shortage of engineers after an industry body said the eight largest major manufacturers would need to hire 35,000 engineers over the next 10 years. years to keep pace with investments.
4. Iran and EU to resume talks to revive nuclear deal After being suspended in March, talks on reviving the 2015 nuclear deal will soon resume. US President Joe Biden is ready to resuscitate the deal, but Trump’s terrorist designation of Iran’s Revolutionary Guards is seen as a major stumbling block.
5. Internet Explorer Shutdown Causes Problems in Japan Microsoft bid farewell to Internet Explorer on June 16, causing panic among government agencies, financial institutions and other organizations whose websites are only compatible with the now discontinued web browser. The procrastination of moving away from IE led to a chaotic last-minute transition.
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