NUNZIUM

Yesterday Deputy Prime Minister Alexander Novak told reporters that Russia will suspend supplies of oil and petroleum products to states which will decide to restrict the price of oil from the country. On the same day the chairman of the board of Russia’s largest private oil company LUKoil (Ravil Maganov, 67) died after falling from a Moscow hospital window plunging from the sixth-floor window of the Central Clinical Hospital - known as the “Kremlin Clinic”. It is with these premises that today September 2 the finance ministers of G7 nations gathered in Elmau (Germany) to decide on the restrictions on Russian oil. The outcome of such meeting shows a strong resolve by EU on this matter. A joint statement has been released: “ […] We will curtail Putin’s capacity to fund his war from oil exports by banning services, such as insurance and the provision of finance, to vessels carrying Russian oil above an agreed price cap. We are united against this barbaric aggression and will do all we can to support Ukraine as they fight for sovereignty, democracy and freedom”. With this the G7 Leaders reaffirmed a shared commitment to preventing Russia from profiting from its war of aggression, to supporting stability in global energy markets and to minimising negative economic spillovers, especially on low- and middle-income countries. To deliver on this commitment, today they confirm a joint political intention to finalise and implement a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally – the provision of such services would only be allowed if the oil and petroleum products are purchased at or below a price (“the price cap”) determined by the broad coalition of countries adhering to and implementing the price cap. In the following days and weeks such measures will be implemented, with a reaction by Russia to be expected. A few hours later Gazprom announced the possibility of a prolonged halt of natural gas supply through a key pipeline to Germany (Nord Stream 1), citing the need for urgent maintenance work. Today the energy ministers of G20 nations had a parallel meeting in Bali to discuss energy security. The meeting was wrapped up without producing a joint statement toward a stable supply of energy. Differences between Russia and the West likely prevented their reaching an agreement.