Anti-Russia alliance explores oil options

The G7 wants to ban the transportation of Russia's seaborne crude if a price cap is not agreed, according to a statement

The Group of Seven (G7) announced on Tuesday it will consider the possibility of an embargo on the transportation of Russian seaborne crude oil unless it is purchased at or below a price to be agreed with international partners.

According to a joint statement, the group, comprising Canada, France, Germany, Italy, Japan, the UK and the US, supports the decision of the European Union to explore ways to curb rising energy prices, including the feasibility of introducing temporary import price caps where appropriate.

"As for oil, we will consider a range of approaches, including options for a possible comprehensive prohibition of all services, which enable transportation of Russian seaborne crude oil and petroleum products globally, unless the oil is purchased at or below a price to be agreed in consultation with international partners," the statement reads.

"In considering this and other options, we will also consider mitigation mechanisms alongside our restrictive measures to ensure that most vulnerable and impacted countries maintain access to energy markets including from Russia."

The group has also urged relevant ministers to "urgently" consult with existing and new suppliers of energy as an alternative to Russian hydrocarbons.

On Tuesday, Politico magazine reported that the West had reached an agreement to set a price cap on Russian oil exports. The US reportedly suggested lifting sanctions on insurance for ships that transport Russian oil, only if countries agreed to buy it at a settled maximum price, thus enforcing a price cap.

It remains unclear, however, how Russia would react to the move, whether it will find ways to bypass it, and what happens to global oil prices if Moscow decides not sell its crude as it becomes less profitable.

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