Russian oil price ceiling reduction to be discussed at G7 summit – expert

Oleksandr Khara, an expert on foreign affairs and security policy at the Center for Defense Strategies, said this in a commentary to Ukrinform.

“We anticipate increased pressure on Russia. Foreign Minister Andrii Sybiha has proposed a new price ceiling for Russian oil at $30 per barrel (it is set at $60 per barrel now – ed). While it remains uncertain whether the G7 will agree to this (following the summit), it is interesting that Saudi Arabia’s Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi are among the invitees. Mohammed bin Salman has the ability to ramp up oil production, which could drive prices lower even without a formal G7 agreement. Meanwhile, India has been purchasing Russian oil in large volumes, and it is unlikely to halt these imports. However, a lower price ceiling would allow India to acquire Russian oil at a reduced cost,” he said.

He expressed uncertainty about whether the price ceiling for Russian oil could be cut in half but emphasized that even a slight reduction would still benefit Ukraine.

“This means the Russians will have to deplete their financial reserves more rapidly,” the expert stated.

At the same time, he cautioned that Ukraine should not anticipate any major announcements in the summit’s final document

“I don’t think the final document will contain any statements stronger than general calls to end the war,” Khara said.

According to him, this is due to U.S. President Donald Trump’s policy toward Russia, which “suggests that he is on the side of Russia and supports Putin.”

“Trump wants the Russian Federation to play a positive role (in negotiations) with Iran. Of course, this is completely naive, but he will eventually have to recognize that Putin has no intention of offering him anything that would allow the United States to claim a foreign policy victory,” the expert stated.

As reported by Ukrinform, in late May, President Volodymyr Zelensky confirmed that he had received an invitation to the G7 summit, which will take place in Canada, the current holder of the G7 presidency.

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