Following the results of the summit in Italy, the leaders of the "Big Seven" will promise to strengthen price restrictions on Russian oil, stifle the Kremlin's future energy projects and reduce Moscow's income from metals.
Points of attention
- G7 leaders plan to tighten price restrictions on Russian oil and oil products.
- The price limit on Russian oil will prohibit Western companies from providing services for cargoes whose price exceeds the threshold values.
- The G7 is ready to use sanctions and innovative enforcement measures to combat sanctions evasion by the Russian shadow fleet.
- The leaders also promise to hinder the development of Russia's future energy projects and cut revenues from metals.
- The G7 allocated $50 billion in financial support from the credit system to Ukraine by the end of the year.
The G7 decided to tackle Russia's oil and gas business seriously
After the G7 summit in Italy, the countries drafted a joint statement.
Bloomberg reports this.
We will continue to exert significant pressure on Russia's revenues from energy and other raw materials," says the draft statement, which is expected to be published on June 14.
The G7 price limit on Russian oil and petroleum products prohibits Western shipowners, insurers, and intermediaries from providing vessels and services for cargoes whose prices exceed the threshold values.
While the restrictions have led to the abandonment of Western insurance and the need for alternatives, Moscow has been able to avoid much of the fallout by building a fleet of tankers operating in hard-to-monitor jurisdictions and turning to non-Western service providers to deliver cargo to new markets such as India.
The US, UK and EU have recently begun imposing sanctions against vessels involved in these supplies.
The G7 "will take steps, including sanctions and innovative enforcement measures using relevant geographic regions, to combat Russia's use of deceptive alternative shipping methods to circumvent our sanctions with its shadow fleet," the statement said.
The G7 leaders will also pledge to do more to prevent "the development of future energy projects and disrupt access to the goods and services on which these projects depend," and will continue to cut Russia's revenues from metals.
G7 leaders agreed to allocate 50 billion dollars to Ukraine
Italian PM Giorgia Meloni said this at a press conference following the meeting of G7 leaders in Apulia, Italy.
Meloni said that the Group of Seven had reached a "political agreement to provide additional financial support to Ukraine in the amount of about $50 billion by the end of the year through the credit system."
She clarified that such support will not be provided by confiscating Russian assets but by using profits from these assets, which will accumulate over time.
It was an unexpected result that I am particularly proud of. Now it will have to be worked out from a technical point of view.
