Great Seven countries agreed to set a fixed price for Russian oil - Reuters

The publication writes that Putin could benefit from a floating price system. The fact is that the price of Russian oil will increase if the cost of Brent oil jumps due to the reduction of supply. The countries of the Great Seven, as well as Australia, agreed to set a fixed price for Russian oil by the end of November, instead of taking a floating rate. About it writes Reuters with reference to their sources.

"The coalition has agreed that the price ceiling will be a fixed price that will be viewed regularly and will not be reduced to the index. This will increase the stability of the market and simplify compliance with the load on market participants," the source said. The material also says that the initial price is not set, but it should be announced in the coming weeks. The countries have agreed to regularly revise the fixed price as needed.

The source added that pricing as a discount to some index would lead to too much volatility and potential price fluctuations. It is reported that the large seven is concerned that the floating price, tied to the level below the international Brent sample, can allow Russian President Vladimir Putin to beat the mechanism by reducing the proposal.

US Finance Minister Janet Yellen and other G7 officials claim that price limitation, which should start on December 5 for oil and on February 5, will reduce Russia's funding without reducing supply to consumers. Earlier, Focus reported that in Russia the population is rapidly poor. According to the data of the Russian State Statistics Service, in the first quarter of 2022 the number of poor in the Russian Federation increased from 12. 7 million to 20. 9 million.