German Chancellor Olaf Scholz believes that a ceiling on Russia’s oil prices should be agreed with most of the international community. “This mechanism can only function on the global level,” Scholz said at a press conference today.

According to him, such a decision cannot be taken unilaterally or by G7 countries only; it requires consultations with many market participants. The Chancellor also said that negotiations on a cap on Russian oil prices are still ongoing.

Why are oil prices rising because of Russia? 

In March, the United States banned oil imports from Russia. In early June, the EU approved the sixth package of sanctions, which included a ban on imports of oil and some petroleum products from Russia. At the same time, it will take the EU about half a year to reject oil and up to 8 months to reject petroleum products.

Hungary achieved an exemption from the embargo on Russian oil supplies through the Druzhba pipeline. Concessions were also made to Slovakia, which will also be able to continue importing oil from Russia through the pipeline.

In June, the G7 leaders agreed to introduce a future price cap on oil imported from Russia. According to Politico, the U.S. proposed to achieve a price cap on Russian oil by taking only those countries that would agree to buy fuel at a set price out of cargo insurance sanctions.

Earlier we reported that Oil gets cheaper after U.S. inventories surge.