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Opinion

The G-7 Cap on Russian Oil Is a Subsidy to China

The G-7 Cap on Russian Oil Is a Subsidy to China
A model of a natural gas pipeline is placed on a Russian rouble banknote and a flag in this illustration photo on March 23, 2022. Dado Ruvic/Reuters
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Commentary

There are many mistakes in the G-7 agreement to put a cap on Russian oil. The first one is that it doesn’t hurt Russia at all. The agreed cap, at $60 per barrel, is higher than the current Urals price, above the five-year average of the quoted price, and higher than Rosneft’s average netback price.

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