The G-7 alliance has agreed to set Russian oil prices to offset the cost of military operations in Ukraine. And if the price of oil is determined, Russia has announced not to sell oil to those countries.
The G-7 countries have agreed to freeze the country’s oil prices to stop global inflation due to the Ukraine-Russia war and Russia’s aggression in Ukraine.
The countries of the G-7 alliance with strong economies are the United States, Japan, Canada, Germany, France, Italy and the United Kingdom. Countries control world trade and the international financial system.
The goal of the G-7 alliance is to reduce Russia’s income from oil exports. For the past few months, the US Biden administration has been pressuring the countries of the G-7 alliance to limit the price of Russian oil.
The European Union (EU) imposed a partial ban on Russian oil purchases after military operations in Ukraine. The EU believes that if the ban is fully implemented, Russia’s oil exports will decrease by 90 percent.
Besides, fixing the price of Russian oil will lower the price of fuel in the world.
But Kremlin spokesman Dmitry Peskov said at a news conference on Friday that companies that impose price caps will no longer receive Russian oil. We will no longer cooperate with them on policies that are not related to the market.
In a statement, the G-7 alliance said that they will stand by the country until the crisis in Ukraine is resolved.
The United States and its allies have imposed unprecedented sanctions on Moscow since the start of military operations in Ukraine on February 24. Many of Russia’s exportable products are subject to these sanctions. But oil sales have not had a major impact on Russia’s economy. Instead, Russia is able to overcome the financial loss through the sale of oil.
According to analysts, India and China may not support this new decision of the G-7 alliance. Because India and China were against any kind of sanctions on Russia since the beginning of the military operation in Ukraine.