G7 does not have enough power to determine the price of Russian oil – World Bank

“The proposed G7 oil price could affect oil flows to Russia, but it is an untested approach that will require the participation of major emerging markets and emerging economies to achieve its objectives,” the report said.

The plan proposed by the Group of Seven (G7) to impose a maximum price limit on the sale of Russian oil can only work if major emerging markets and developing countries join this plan, the World Bank said.

In the forecast of the oil market, which was released on Wednesday, the World Bank showed the associated risks. She wrote that risks to the upside are mostly supply-side, including the extent to which Russian exports are affected by the new trade measures.

“The proposed G7 oil price could affect oil flows to Russia, but it is an untested approach that will require the participation of major emerging markets and emerging economies to achieve its objectives,” the report said.

She added that while major disruptions to Russian exports may occur in the short term as trade routes are disrupted, “market participants may find ways to circumvent the sanctions, as has often happened in other phases of sanctions.”

The Group of Seven leading economies – the United States, Canada, France, Germany, Italy, Britain, and Japan – agreed last month to impose a price ceiling on Russian oil to curb the country’s revenue from energy exports. The price range has not yet been determined.

According to the plan, banking, insurance and shipping companies will be banned from providing services to Russian companies that sell oil at prices above the set limit. December 5 also marks the deadline for the European Union to ban all Russian imports of crude oil.

Moscow has said that it will not export oil to countries that are participating in inflation.