Capping the price of Russian oil would be an unprecedented action, and some analysts believe it could backfire. G7 members agreed on&nbsp;Friday that they want to pursue this strategy "urgently."

How would a cap work?&nbsp;

In order to keep Moscow's profits in check while it continues its war against Ukraine, Russian oil would be bought at a discount from current market rates. However, Moscow would keep the price above the cost of production to encourage the export of the oil.&nbsp;

A US Treasury official suggested that the discounted rates, which were determined separately for crude oil and refined petroleum products, may be periodically altered.

Are there any precedents?&nbsp;

There have been international mechanisms designed to stop a country from exporting oil, as those currently targeting Iran and Venezuela, or to limit commerce, like the UN "Oil-for-Food" programme, which from 1995 to 2003 only permitted Iraq to sell oil to pay for food, medicine, and humanitarian needs.&nbsp;

However, there has never been an attempt to impose a country with a different pricing.

Will others join the G7 plan?&nbsp;

British, Canadian, French, German, Italian, Japanese, and American G7 members have already curtailed or suspended their oil purchases from Russia.&nbsp;

However, participation from other nations is necessary for the strategy to succeed, especially large nations like China and India, two of Russia's most significant trading partners.&nbsp;

While the G7 proposal may lead to reduced costs, Bill O'Grady of Confluence Investment said that "China and India are already getting cheaper — cheap enough — oil."

How will Russia react?&nbsp;

Russia will need to give in to pressure and carry on exporting to the participating nations for the price cap to be effective.&nbsp;

Alexander Novak, Russia's deputy prime minister, issued a warning on Thursday, telling nations who set price caps on petroleum goods that Moscow would not supply to them.&nbsp;

The price of oil increased Friday. Kilduff credited the G7 statement for that, at least in part. He claimed that it had sparked worries about a global supply shortage and a resulting harmful price increase.&nbsp;

Even if they have already fallen from their peaks just after the Russian invasion in February, oil prices are still exceedingly high and unstable.

Would a cap undercut European sanctions?&nbsp;

With the exception of three members, the European Union is getting ready to forbid not just the purchase of Russian petroleum as of December 5, but also the reimbursement of travel expenses to non-EU countries by European insurance.&nbsp;

With regard to the insurance restrictions, O'Grady stated, "I do think that Washington is really uncomfortable," adding that they would "really be a big deal."&nbsp;

About 90% of maritime petroleum transit is covered by British and EU parties.&nbsp;

The US-initiated price-capping plan would lessen the impact of the embargo by exempting the transport of cargoes sold at a discount from the embargo. The G7 later supported the concept.

(with inputs from agencies)

Capping the price of Russian oil would be an unprecedented action, and some analysts believe it could backfire. G7 members agreed on Friday that they want to pursue this strategy "urgently.

Capping the price of Russian oil would be an unprecedented action, and some analysts believe it could backfire. G7 members agreed on Friday that they want to pursue this strategy "urgently." How would a cap work? In order to keep Moscow's profits in check while it continues its war against Ukraine, Russian oil would be bought at a discount from current market rates. However, Moscow would keep the price above the cost of production to encourage the export of the oil. A US Treasury official suggested that the discounted rates, which were determined separately for crude oil and refined petroleum products, may be periodically altered. Are there any precedents? There have been international mechanisms designed to stop a country from exporting oil, as those currently targeting Iran and Venezuela, or to limit commerce, like the UN "Oil-for-Food" programme, which from 1995 to 2003 only permitted Iraq to sell oil to pay for food, medicine, and humanitarian needs. However, there has never been an attempt to impose a country with a different pricing. Will others join the G7 plan? British, Canadian, French, German, Italian, Japanese, and American G7 members have already curtailed or suspended their oil purchases from Russia. However, participation from other nations is necessary for the strategy to succeed, especially large nations like China and India, two of Russia's most significant trading partners. While the G7 proposal may lead to reduced costs, Bill O'Grady of Confluence Investment said that "China and India are already getting cheaper — cheap enough — oil." How will Russia react? Russia will need to give in to pressure and carry on exporting to the participating nations for the price cap to be effective. Alexander Novak, Russia's deputy prime minister, issued a warning on Thursday, telling nations who set price caps on petroleum goods that Moscow would not supply to them. The price of oil increased Friday. Kilduff credited the G7 statement for that, at least in part. He claimed that it had sparked worries about a global supply shortage and a resulting harmful price increase. Even if they have already fallen from their peaks just after the Russian invasion in February, oil prices are still exceedingly high and unstable. Would a cap undercut European sanctions? With the exception of three members, the European Union is getting ready to forbid not just the purchase of Russian petroleum as of December 5, but also the reimbursement of travel expenses to non-EU countries by European insurance. With regard to the insurance restrictions, O'Grady stated, "I do think that Washington is really uncomfortable," adding that they would "really be a big deal." About 90% of maritime petroleum transit is covered by British and EU parties. The US-initiated price-capping plan would lessen the impact of the embargo by exempting the transport of cargoes sold at a discount from the embargo. The G7 later supported the concept. (with inputs from agencies)

Explained: Can 'risky' G7 cap on Russian oil prices backfire?

Europe is facing an energy crisis and fears mounting that the continent could actually be looking at a pretty tough winter ahead as Gazprom has extended shutdown of gas flow through Nord stream 1. This move comes after G7 nations agreed to impose price cap on Russian oil.

Russia shuts gas supplies indefinitely; Sweden PM warns of 'war winter'

As the war in Ukraine grinds on Russia, the Western powers are looking for ways to afflict economic pressure on each other. In the latest, the G7 countries have come to an agreement over a price cap on Russian oil even as Russia has delayed opening a pipeline, which is a major source of oil to Germany.

G7 to impose price cap as Russia misses deadline to restart gas supplies

Russia misses deadline to restart gas supplies, G7 to impose price cap

Gazprom has missed September 3 deadline to restart gas supplies and said oil leak is behind the supply delay. G7 countries have come to an agreement over a price cap on Russian oil.

Gazprom misses September 3 deadline to restart gas supplies

Russia has delayed reopening of major gas pipeline in blow to gas-starved Europe. Meanwhile, Russia has blamed Western sanctions for the delay. Can Europe cope without Russian oil & gas?

Russia cuts off gas exports to Europe; blames westerns sanctions for delay

After Russia announced an extended halt of the Nord Stream 1 gas pipeline, European Union (EU) Economy Commissioner Paolo Gentiloni on Saturday stated that the 27-nation bloc is 'ready to react' in case of a total halt of Russian gas deliveries.

After Russia announced an extended halt of the Nord Stream 1 gas pipeline, European Union (EU) Economy Commissioner Paolo Gentiloni on Saturday stated that the 27-nation bloc is 'ready to react' in case of a total halt of Russian gas deliveries. “We expect that Russia is respecting the contracts that they have but even if the weaponisation of energy will continue or will increase in response to our decisions, I think that the European Union is ready to react," said Gentiloni. Read more: Russian energy giant Gazprom halts Nord Stream 1 gas supplies for maintenance Asserting that Brussels was not afraid of the Russian president, Gentiloni added, “We are not afraid of Putin's decisions. We asked Putin to respect their contracts but if they don’t respect their contracts then we are ready to react.” As reported extensively by WION, after G7 nations on Friday vowed to "urgently" implement a price cap on Russian oil imports, Kremlin swung into action and immediately announced that the resumption of the Nord Stream 1 gas pipeline will be delayed due to 'leakages' in sections of the pipeline. Read more: G7 nations talk of implementing Russian oil price cap 'urgently' In a statement, Gazprom indicated it had discovered "oil leaks" in a turbine during a planned three-day maintenance operation and that "until it is repaired... the transport of gas via Nord Stream is completely suspended". Moreover, Moscow's decision to halt the gas supplies came in the backdrop of the EU agreeing on the proposition to suspend a 2007 visa travel deal, under which Russian tourists entering the bloc for holidays, shopping and other reasons will be curbed. "We agreed on full suspension of the European Union-Russia visa facilitation agreement. This will significantly reduce the number of new visas issued by the EU member states. It's going to be more difficult, it's going to take longer," said Josep Borrell, EU’s high representative for foreign policy. Read more: EU agrees to suspend visa travel deal with Russia. Defers full tourist visa ban The European Union, along with other western countries have been on Russia's tail since February in the form of sanctions and other restrictions. However, so far, it is the EU that is paying much of the price for its stand. (With inputs from agencies) WATCH WION LIVE HERE:

'We are ready to react', says EU economics chief over halted Russian gas supplies

The G7 countries have agreed to impose a price cap on Russian oil even as Russia has delayed opening a pipeline, which is a major source of oil to Germany. As per reports, there is no new deadline for pipeline restart.

Russia fails to resume gas supplies; G7 agrees on price cap for Russian oil

G7: Price cap per barrel under discussion, to be introduced in December

Tensions have spiked sharply in the Asia pacific especially after US house speaker Nancy Pelosi visited Taiwan. With Beijing now announcing that it will hold military exercises that include live fire drills in six zones that surround Taiwan.

China to begin targeted military operations near Taiwan, G7 condemns China's aggressive stance

Miffed that its One-China policy is not being respected by the world leaders in the aftermath of US House Speaker Nancy Pelosi's Taiwan visit, China has shelved its bilateral meeting scheduled with Japan.

Reportedly, on the sidelines of the ASEAN event in Cambodia, the foreign ministers of the two countries were all set to meet. However, after Japan, along with the other G7 nations released a statement on Taiwan, Beijing effective immediately pulled the plug.&nbsp;

"The Chinese side is strongly displeased with the joint statement put out by the group of seven nations about Taiwan." said Hua Chunying, spokesperson of the Chinese foreign ministry.&nbsp;

The G7 statement on China and Taiwan

As reported by WION, the G7 foreign ministers in their joint statement titled "Preserving peace and stability across the Taiwan strait" called on China to resolve the tensions peacefully.&nbsp;

"We are concerned by recent and announced threatening actions by the People’s Republic of China (PRC), particularly live-fire exercises and economic coercion, which risk unnecessary escalation. There is no justification to use a visit as pretext for aggressive military activity in the Taiwan Strait," said the statement.

WATCH:<a href="https://www.youtube.com/watch?v=vnzhfP2CjV0&amp;ab_channel=WION">&nbsp;G7: China destabilizing the region. Taiwan closely monitoring the drills</a>

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It further added that China's escalatory response could increase tensions and destabilise the region. Lastly, the statement asked China to not try and change the status quo in the region.

&nbsp;"We call on the PRC not to unilaterally change the status quo by force in the region, and to resolve cross-Strait differences by peaceful means. There is no change in the respective one China policies, where applicable, and basic positions on Taiwan of the G7 members." said G7&nbsp;foreign ministers.&nbsp;

China starts its biggest military exercise around Taiwan

Reportedly, a day after Nancy Pelosi&nbsp;concluded a whirlwind less than 24 hours visit to Taiwan, China started its biggest military exercise in six zones interspersed around the island nation.

In response to the Chinese threat, Taiwan has put its military on alert and already staged multiple civil defence drills. Meanwhile, the USA has moved its several naval assets in and around the conflict zone.

Read More:&nbsp;<a href="https://www.wionews.com/world/china-starts-its-largest-ever-military-exercise-surrounding-taiwan-503504">China starts its largest-ever military exercise surrounding Taiwan</a>

(With inputs from agencies) 
 
WATCH WION LIVE HERE:

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&nbsp;

Miffed that its One-China policy is not being respected by the world leaders in the aftermath of US House Speaker Nancy Pelosi's Taiwan visit, China has shelved its bilateral meeting scheduled with Japan.

Miffed that its One-China policy is not being respected by the world leaders in the aftermath of US House Speaker Nancy Pelosi's Taiwan visit, China has shelved its bilateral meeting scheduled with Japan. Reportedly, on the sidelines of the ASEAN event in Cambodia, the foreign ministers of the two countries were all set to meet. However, after Japan, along with the other G7 nations released a statement on Taiwan, Beijing effective immediately pulled the plug. "The Chinese side is strongly displeased with the joint statement put out by the group of seven nations about Taiwan." said Hua Chunying, spokesperson of the Chinese foreign ministry. The G7 statement on China and Taiwan As reported by WION, the G7 foreign ministers in their joint statement titled "Preserving peace and stability across the Taiwan strait" called on China to resolve the tensions peacefully. "We are concerned by recent and announced threatening actions by the People’s Republic of China (PRC), particularly live-fire exercises and economic coercion, which risk unnecessary escalation. There is no justification to use a visit as pretext for aggressive military activity in the Taiwan Strait," said the statement. WATCH: G7: China destabilizing the region. Taiwan closely monitoring the drills × It further added that China's escalatory response could increase tensions and destabilise the region. Lastly, the statement asked China to not try and change the status quo in the region. "We call on the PRC not to unilaterally change the status quo by force in the region, and to resolve cross-Strait differences by peaceful means. There is no change in the respective one China policies, where applicable, and basic positions on Taiwan of the G7 members." said G7 foreign ministers. China starts its biggest military exercise around Taiwan Reportedly, a day after Nancy Pelosi concluded a whirlwind less than 24 hours visit to Taiwan, China started its biggest military exercise in six zones interspersed around the island nation. In response to the Chinese threat, Taiwan has put its military on alert and already staged multiple civil defence drills. Meanwhile, the USA has moved its several naval assets in and around the conflict zone. Read More: China starts its largest-ever military exercise surrounding Taiwan (With inputs from agencies) WATCH WION LIVE HERE:

Nancy Pelosi Taiwan trip: China scraps meet with Japan over G7 statement

Amid the ongoing Russia-Ukraine war, western leaders held two major summits recently. G7 Summit in Germany and NATO summit in Spain's Madrid. In the meantime, Russia continued to escalate its offensive. So, What did the G7 and NATO summits actually mean for Ukraine?

What did the G7 and NATO summits mean for Ukraine?

The leaders of the group of seven rich nations on Tuesday tried to balance the need to tackle global warming and their fears of energy shortage. The G7 countries- The United States, Canada, France, Germany, Italy, Japan and the UK ended their summit by reaffirming their goal to reduce reliance on fossil fuels.

G7 struggles to balance climate change and energy crisis

The leaders of the G7 countries had a lot to talk about but very little to offer. WION brings you the biggest highlights from the G7 summit and explains why was it high on optics and low on substance.

G7 Summit's biggest highlights: High on optics, low on substance?

The G7 leaders along with EU representatives held a round table discussion. To counter China's One Belt One Road (OBOR) initiative, G7 unveiled a global infrastructure project.

G7 aims to raise $600 billion as it unveils a global infrastructure project to take on China

Indian Prime Minister Narendra Modi, who is in Germany on a two-day visit held bilateral with German Chancellor Olaf Scholz on the sidelines of the G7 Summit. He also met Trudeau and Macron.

Indian PM Modi holds bilateral on sidelines of G7 summit

Amid the ongoing Russia-Ukraine conflict, the G7 leaders have agreed to put a price cap on Russian oil and are seeking to impose new sanctions on Russia.

G7 leaders vow support to Ukraine, seeking to impose more economic sanctions on Russia

G7 world leaders have declared Russia's missile attack on a shopping mall in Ukraine a war crime. At least 15 people were killed following the attack in Kremenchuk, central Ukraine on Monday.

G7 Leaders: Russia's attack on Ukrainian mall a war crime

Europe has joined the G7's plan to counter China's Belt & Road Initiative. Does this mean Europe is finally taking a stand against Beijing? What forced Europe to abandon its ambivalence? Palki Sharma Upadhyay tells you.

Gravitas: Is Europe finally taking on China?

The G7's initiative to take on China's Belt & Road initiative failed last year. The world's richest countries are now trying to reboot the same initiative. The G7 wants to spend $600 Billion to counter BRI. Palki Sharma Upadhyay why it may not be enough.

Gravitas: World's richest countries struggle to challenge China's Belt and Road

G7 nations are considering a plan to ban imports of Russian gold. How will this affect big gold consumers like India? Should 7 countries be permitted to reshape global trade? Palki Sharma Upadhyay tells you.

Gravitas: G7 considering a ban on Russian gold

Indian Prime Minister Narendra Modi on Tuesday left for a visit to the UAE after attending the G7 summit in Germany on the sidelines of which he met several world leaders.

Indian PM Modi departs from Munich Airport for Abu Dhabi after attending G7 summit

Today is the last day of the G7 summit, it's the gathering of the leaders of the group of seven leading industrial nations. Just like the past two days, summit is going to be dominated by Russia's invasion of Ukraine. WION's Siddhant Sibbal brings you more insights.

G7 leaders condemns Russian air strike, vow support to Ukraine

Today is the third and last day of the ongoing G7 summit in Germany. WION's Correspondent Siddhant Sibbal and Trent Murray shares there take on the ongoing meeting and possible outcome of the summit.

WION Ground Report: What's the potential outcome of G7 summit?

The G7 leaders along with EU representatives held a round table discussion. Like other high-stakes meetings, Russia Ukraine War dominated the talks. Ukraine President Zelensky also joined the G7 Summit virtually.

Show of Unity at the 48th G7 Summit: Ukraine President joins G7 Summit

World leaders mocked Russian President Vladimir Putin's tough-man image at a G7 lunch in Germany, joking about whether they should strip down to shirtsleeves or even less. Molly Gambhir tells you all about the banter behind the scenes at G7 Summit.

WION Fineprint | G7 Heads Mock Putin, Joke About Going Shirtless

The G7 leaders along with EU representatives held a round table discussion. Like other high-stakes meetings, Russia Ukraine War dominated the talks. Ukraine President Zelensky also joined the G7 Summit virtually. Now, G7 leaders pledged to stand with Ukraine.

G7 pledges to stand with Ukraine: 'With Ukraine as long as it takes'

Ukraine President Zelensky urges G7 leaders to end the war before 2023

Some of the leaders of the G7 rich democracies are pushing for an acknowledgement of the need for new financing for fossil energies investments as European states scramble to diversify supplies.

Global Energy Crisis: G7 leaders debate fossil fuel investment

The 48th G7 meeting is underway in Germany but it comes amid energy crisis in Europe. Recently, hundreds of protesters have gathered outside G7 venue to demand climate protection.

Hundreds of protesters gather outside G7 venue to demand climate protection

The 48th G7 meeting is underway in Germany with world leaders discussing key issues including the Russia-Ukraine war. G7 leaders have agreed to ban gold exports from Russia. For more details, watch this report by Siddhant Sibbal.

G7 leaders agree to ban gold exports from Russia

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