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G7 Finance Ministers Recognize Violations of Price Cap on Russian Oil

by Krystal

The finance ministers of the Group of Seven (G7) nations have pledged to enhance efforts to prevent Russia from evading sanctions related to the oil price cap. This commitment was announced following a meeting in Washington, as reported by The Guardian and relayed by Ukrinform.

In a statement, the G7 ministers expressed their ongoing dedication to “taking further initiatives in response to oil price cap violations.” However, they did not provide specific details on the additional measures planned.

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In December 2022, the G7, along with the EU and Australia, established a price cap on Russian crude oil exports. This was intended to pressure Russian oil buyers, limiting Russia’s oil sales and revenue while trying to avoid a global fuel shortage and rising oil prices. Despite this effort, some countries, notably China, continue to import Russian crude oil without adhering to the price cap.

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The G7 finance ministers also announced intentions to take further action to “increase the costs to Russia of using the shadow fleet to evade sanctions.” Reports indicate that Russia utilizes a fleet of old and unmarked tankers, referred to as “shadow tankers,” to transport oil without proper cargo or route declarations. These tankers often load or transfer their cargo at sea to avoid detection.

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Additionally, the G7 ministers stated their plan to intensify efforts to prevent financial institutions from aiding Russia in evading sanctions. The U.S. Office of Foreign Assets Control has noted that Russian financial institutions have established networks of foreign subsidiaries to facilitate the purchase and sale of sanctioned goods.

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Previously reported by Ukrinform, the G7 set the price cap on Russian oil at $60 per barrel. Meanwhile, the Office of the President of Ukraine indicates that Russia continues to earn approximately $20 billion per month from oil exports.

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