Britain: The G7 ceiling on Russian oil is a “significant measure” against Putin

London, Thanasis Gavos

London is satisfied with the decision Ministers of Finance of the G7 Group to apply a price ceiling (ceiling) for imported Russian crude oil and oil products.

The British minister Nadeem Zahawi he spoke of a “significant measure” which “will reduce Russian revenues and mitigate the impact of Putin’s war on global energy prices in support of the most vulnerable”.

Earlier, from Washington where he had relevant contacts with his American counterpart Janet YellenMr. Zahawi had established an intention of quick decisions on the matter.

In his statement after the deal, he added that taking further action against Putin was a “personal priority” for him as long as he holds the post of finance minister.

“We will undercut Putin’s ability to fund his war from oil exports by banning services such as insurance and financing of ships carrying Russian oil above an agreed price threshold,” Mr Zahawi said.

Analysts in the British capital point out that the implementation of the cap will depend to a large extent on the refusal of London-based insurance companies to insure cargoes of Russian crude oil and oil products that exceed the purchase price limit to be determined. London-based companies in the sector cover 95% of the global tanker fleet insurance.

Although representatives of the UK marine insurance sector have expressed some reservations about how easily the threat of not insuring a cargo can act as an incentive to meet the cap, an executive at insurance and self-insurance market Lloyd’s of London appeared more positive speaking to the Financial Times.

As he noted, insurers will ask cargo owners, who typically buy multiple insurance policies, to commit to complying with the cap. “If you’re a company that doesn’t trade under the cap, then you won’t be able to buy insurance,” the same person warned.

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