We, the G7 and Australia, met on [24] November 2022 to agree on the maximum price for seaborne Russian-origin crude oil within our respective price cap regimes in coordination with all Member States of the European Union.

With our decision today, we deliver on the commitment of G7 Leaders at their summit in Elmau to preventing Russia from profiting from its war of aggression against Ukraine, to supporting stability in global energy markets and to minimising negative economic spillovers of Russia’s war of aggression, especially on low and middle-income countries. To achieve these goals, G7 Finance Ministers launched a process to finalise and implement a price cap on Russian-origin crude oil and petroleum products on 2 September 2022. As announced by G7 Finance Ministers, the price cap will be implemented by a comprehensive prohibition of services which enable maritime transportation of Russian-origin crude oil and petroleum products globally with an exception for crude oil and petroleum products that are purchased at or below a specified maximum price.

The price cap is specifically designed to reduce Russian revenues and Russia´s ability to fund its war of aggression whilst limiting the impact of Russia´s war on global energy prices, particularly for low and middle-income countries.

In light of the objectives of the price cap, we have decided today to set the initial maximum price for seaborne Russian-origin crude oil at [XX] US-Dollar per barrel. This maximum price will be implemented by all members of the Price Cap Coalition in their respective price cap regimes through their domestic legal processes.

We reiterate that the price cap on Russian-origin crude oil shall simultaneously enter into force across our jurisdictions on 5 December 2022. Our respective regulations will foresee a wind-down period of [45] days for transactions that were concluded prior to this date. Details on the implementation of the price cap can be found in guidance that we have released or are about to release in our respective constituencies. We underscore our firm intention to harmonize implementation of the price cap across our jurisdictions to the maximum extent possible, minimizing complexity for market actors. We reiterate our agreement that the price cap on Russian-origin petroleum products shall enter into force on 5 February 2023. We will announce the maximum price for Russian-origin petroleum products separately.

We reaffirm our intention to phase out Russian oil and petroleum products from our domestic markets. This commitment remains unchanged by the implementation of the price cap. Instead, the price cap is designed to allow our service providers to support shipments of Russian-origin crude oil and petroleum products to other countries. We call on all countries that still seek to import seaborne Russian oil and petroleum products to do so only at prices at or below the price cap. We note that this is in the economic self-interest of these countries, as imports under the price cap will help curtail energy prices. Thus, the price cap has the potential to be particularly beneficial to countries, notably vulnerable low- and middle-income countries, suffering from high energy and food prices, aggravated by Russia’s war of aggression.

We commend the work of the USA as the first lead coordinator of the Price Cap Coalition, with its current members G7 and Australia, that has enabled today’s unanimous decision. We applaud the 27 Member States of the European Union and the European Commission for having agreed to implement the maximum price announced today in the EU sanctions regime against Russia prior to our announcement.

We commit to closely monitoring the effectiveness and impact of the price cap going forward. We will adjust the maximum price as appropriate. In case of a revision of the price, we will foresee a grandfathering rule for transactions that were concluded prior to the revision in compliance with the maximum price agreed today. The Price Cap Coalition may also consider further action to ensure the effectiveness of the price cap.