Russian oil will be subject to a price ceiling that would be about equal to half of the present purchase price as retaliation for Moscow’s invasion of Ukraine, Prime Minister Fumio Kishida said on Sunday as reported by The Japan Times.
Joint communiqué issue
A mechanism would be created so that Russian oil “will not and cannot be bought at a higher price” than the cap, Kishida said during a stump speech in Tokyo, citing a joint communiqué issued after a summit of the Group of Seven developed nations late last month.
According to the communiqué, a plan to cap oil prices might allow for the international shipping of Russian crude oil and petroleum products only if the commodity is purchased at or below a predetermined price.
Because Russia is thought to be profiting from high energy prices brought on by supply worries as a result of the conflict, limiting the price of oil is anticipated to strengthen the existing sanctions imposed on that nation.
In his address to the audience ahead of the July 10 election for the Upper House, Kishida stated, “We are confronting a dangerous scenario in which the rule of peace is being undermined.” “We must demonstrate that using aggressiveness has a high cost.”
Leaders from the United States, Britain, Canada, France, Italy, Japan, and the European Union met for three days in southern Germany as the months-long conflict, growing inflation, and shortages of food and energy put the world’s most powerful democracies to the test.
Adding that he had urged other leaders to cooperate in order to take action against growing expenses during the G7 conference, Kishida noted that prices had skyrocketed as a result of Russia’s war against Ukraine.
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Source: The Japan Times