G7 agrees to explore introduction of energy price caps

MADRID, 28 Jun. (EUROPA PRESS) -

The G7 leaders, meeting in Germany, have agreed to implement immediate measures to ensure energy supply and reduce cost volatility, including through the study of setting price limits, to reduce this source of energy as much as possible. Russian income to finance the invasion of Ukraine.

The final communiqué of the meeting, which in addition to representatives of the world's most developed economies was also attended by representatives of Argentina, India, Indonesia, Senegal, South Africa and Ukraine, underlines the willingness of the G7 to help stabilize and transform the world economy. at the same time as dealing with the rising cost of living for citizens.

In this sense, the final declaration includes a commitment to coordinate economic security, strengthen the resilience of supply chains and ensure equal conditions.

"We will take immediate steps to secure energy supply and reduce price surges caused by extraordinary market conditions, including by exploring additional measures such as price caps," the statement said.

In the specific case of Russian oil, the G7 leaders have put different approaches on the table, including the option of "a possible total ban" on all services that allow the transport of Russian crude oil and derivatives by sea at the unless oil is bought at or below an agreed price.

In this regard, mitigation mechanisms will be considered alongside restrictions to ensure that the most vulnerable countries retain access to energy markets, including from Russia.

In this regard, the G7 leaders reaffirm their commitment to gradually eliminate their countries' dependence on Russian energy, without compromising climate and environmental goals.

"We are working to ensure that Russia does not take advantage of its position as an energy producer to benefit from its aggression at the expense of vulnerable countries," the leaders said.

In coordination with the International Energy Agency (IEA), the G7 affirms its determination to explore additional measures to reduce price volatility and its impact on the economy, including the provision of short-term fiscal support to the most vulnerable groups, as well as assistance to developing countries.

Likewise, the most developed economies have agreed to intensify their efforts in support of the stability of the world energy market, through the short-term increase of their collective production, the appropriate use of reserves and the collaboration with international partners, for which that have urged producing countries to increase their supply to reduce tension in the markets.

On the other hand, they agree on the goal of mobilizing 600,000 million dollars (567,000 million euros) over the next five years through the Association for Infrastructure and Global Investment in order to reduce the global investment gap.

In doing so, the G7 hopes to intensify its cooperation globally, including through working towards new Just Energy Transition Partnerships with Indonesia, India, Senegal and Vietnam, as well as building on its existing partnership with South Africa.

"At a time when the world is threatened by divisions and shocks, we, the G7, stand united," said the statement, in which the leaders reiterated their condemnation of Russia's illegal and unjustifiable aggression against Ukraine.

"We will support Ukraine for as long as necessary, providing the necessary financial, humanitarian, military and diplomatic support in its courageous defense of its sovereignty and territorial integrity," they say.

In this regard, they recall that the financial support provided in 2022 to Ukraine amounts to more than 2,800 million dollars (2,647 million euros) in humanitarian aid, with the commitment to grant 29,500 million dollars (27,889 million euros) in budget aid. .

We are firmly committed to supporting the reconstruction of Ukraine through an international reconstruction conference and plan, drawn up and implemented by Ukraine in close coordination with its international partners.

They have also ratified their willingness to continue imposing severe and lasting costs on Russia in order to help end the war, which, beyond its direct implications, is impeding global development and drastically worsening energy security and access. to food worldwide.

"We remain steadfast in our commitment to our unprecedented coordination on sanctions for as long as necessary, acting in unison at every stage," they add, after agreeing at the start of the summit to introduce restrictions on Russian gold.

On the other hand, the G7 leaders have expressed their support for the establishment by the end of 2022 of an open and cooperative international Climate Club, with the intention of promoting urgent, ambitious and inclusive actions to accelerate the implementation of the Paris Agreement.