G-7 finance ministers will meet virtually on Friday, when they are expected to release an endorsement of a plan to set a cap on the price of Russian oil and commit to finalizing its implementation, The Wall Street Journal reports.
Under the plan officials have been discussing this summer, the G-7 countries would bar financing and insuring Russian oil shipments unless the oil is sold below a set price.
The price at which the cap would be set is still unclear, as officials seek a balance between limiting Russian revenue and maintaining an incentive for Russia to sell its oil; Nymex crude oil is trading ~$90/bbl, but analysts say Russian crude already is selling at a discount of more than $20/bbl below global benchmarks.
The price cap plan reportedly also would apply to petroleum products, such as fuel oil, another major Russian export.
The West has been largely unsuccessful in squeezing Russia's energy revenues, as China, India and others have stepped up purchases of discounted Russian barrels to record levels.
"Despite sanctions pressure and an unfavorable external environment," Russia's Gazprom just reported a record-high net profit of 2.5T rubles in H1 2022.