SCHLOSS ELMAU, Germany: Leaders from the Group of Seven major countries are expected to reach a broad agreement on setting a ceiling on Russian oil prices, at their ongoing meeting in Schloss Elmau, southern Germany, it was learned Sunday.

The plan would allow countries that import Russian oil to provide transport ships with insurance coverage only if they agree to set such a ceiling, according to a senior European Union official.

Although details still need to be worked out, the G7 nations are likely to reach a broad pact at the three-day summit, which started the same day, the official said.

If the plan is realized, it would deal another blow to oil revenues of Russia, which continues to invade Ukraine, pundits said.

At their online meeting in May, the leaders of the G7, which groups Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union, agreed to ban imports of Russian oil in stages.

But the effectiveness of the staged sanctions has weakened due to rises in crude oil prices on the international market.

Against this background, US Treasury Secretary Janet Yellen had proposed setting a cap on Russian oil prices.

Countries refusing to set such a ceiling are expected to be barred from the Lloyd’s of London, the world’s largest insurance marketplace, informed sources said.

If oil tankers and vessels transporting oil are not insured, shipping companies have to bear the risk of paying huge damages in the event of an accident, a situation effectively making marine transportation impossible, the sources said.

JIJI Press