The Group of Seven (G-7) has signaled that it’s comfortable with the European Union (EU) setting a price cap for exports of Russian diesel between $100 and $110 per barrel as the US and its allies try to avoid a major disruption in the market, according to a G-7 official, Bloomberg reported.
An EU ban on importing processed petroleum products from Russia is set to take effect on Feb. 5, and the bloc is working with the G-7 to impose a price cap level for third-country sales. The European Commission, its executive arm, has proposed a cap level of $100.
Discussions are ongoing, but the sides are optimistic about reaching a deal before the EU import ban takes effect, the official said.
Earlier, the Department of the Treasury announced that the US was discussing the price cap for Russian oil products with the European Union and the G-7 countries.