Sunday, March 3, 2024 | 00:12 WIB

G7 asks Indonesia to take part in capping Russian oil prices

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Oil refinery illustration. (Source: Pertamina)

As an illustration, he said, the production cost for most types of Russian oil is US$10 per barrel and for others around US$40. In recent months, global oil prices have breached above US$100, so Russia has enjoyed huge profits.

The US and the G7 have agreed not to import oil from Russia, as a form of protest against rising prices. In addition, they have banned financial services institutions, such as insurance companies, to facilitate shipments of Russian oil.

The US has imposed the import ban since March, while the European Union is expected to follow suit in December. He hopes other countries, including Indonesia, will take similar step.

Read: INDONESIA’S G20 PRESIDENCY, Alliance to achieve world economic recovery and growth

He explained that Indonesia could benefit if it joins the coalition and support the price cap. If this measure succeeds, government’s energy subsidies can decrease, thereby reducing the fiscal burden in the national budget. (un)

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