G-7 plans new sanctions on Russia as its oil exports rise despite price cap
Breanne Deppisch
Video Embed
Leaders from the Group of Seven member nations are planning to tighten restrictions on Russian energy exports at their summit in Japan this week, in a bid to crack down both on Moscow’s illegal oil shipments and third-party countries who have helped Moscow evade the sanctions.
The nations are aiming to undermine both Russia’s future energy production and the export revenue that has funded its war in Ukraine. Negotiations are also underway on a ban on Russian piped gas.
PRICE TAG FOR BIDEN SIGNATURE CLIMATE LAW BALLOONS TO MULTIPLE OF INITIAL ESTIMATES
Though details are still being negotiated ahead of the summit, U.S. officials expect the G-7 to agree to automatically ban exports of all Russian goods from certain categories unless they are on a list of approved items, according to Reuters.
The meeting comes as Russian seaborne crude exports rose to a new high in April.
Russian seaborne oil exports increased to 3.7 million barrels per day in the four-week period ending May 12, according to ship tracking data compiled by Bloomberg—a 10% jump from the last month and the highest level recorded since the outlet began compiling the data in early 2022.
It is unclear whether the volumes are being shipped at or below the oil price cap set by Western leaders, which seeks to limit exports above $60 per barrel for crude and $100 for refined petroleum products.
Still, some officials told Reuters they are doubtful that any G-7 actions to restrict Russian trade will be effective, at least in the near-term.
“At least on day one, that change in presumption doesn’t change the substance of what’s allowed, but it matters for the long-term trajectory of where we’re going and the restrictiveness of the overall regime,” one U.S. official told Reuters.
It’s just one in a tranche of punishing new actions the West plans to announce this weekend.
G-7 and European Union leaders are also planning to ban the restart of Russian piped gas for the first time since the start of the war, according to officials involved in negotiations, in a bid to prevent resumption of Russian gas deliveries, which Moscow began throttling last summer.
One official involved in the negotiations told the Financial Times that ban is aimed at ensuring “partners don’t change their mind in a hypothetical future” in which Russia may seek to resume gas deliveries to the bloc.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
It is also seen as giving confidence to investors backing LNG infrastructure projects in the EU.
A draft G-7 statement said the member countries would further reduce their use of Russian energy sources “including preventing the reopening of avenues previously shut down by Russia’s weaponization of energy,” at least until “there is a resolution of the conflict.”