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G7 to implement Russian oil price cap ‘urgently’

JEAN-FRANCOIS MONIER / AFP

AFP | by Sebastien ASH

G7 industrialised powers vowed Friday to move urgently towards implementing a price cap on Russian oil imports in a bid to cut off a major source of funding for Moscow’s war in Ukraine.

The G7 said it was working towards a “broad coalition” of support for the measure but officials in France urged caution, saying a final decision could only be taken once all 27 members of the European Union had given their assent.

Households on the continent have borne the brunt of rising energy prices, with governments under pressure to alleviate the pain of the resulting high inflation.

“Russia is benefitting economically from the uncertainty on energy markets caused by the war and is making big profits from the export of oil and we want to counter that decisively,” German Finance Minister Christian Lindner said in a press conference after the move was announced.

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The aim of the price cap on oil exports was to “stop an important source of financing for the war of aggression and contain the rise in global energy prices”, he added.

Ahead of Friday’s decision, Kremlin spokesman Dmitry Peskov sounded a clear warning.

The adoption of a price cap “will lead to a significant destabilisation of the oil markets,” and force American and European consumers to pay the price, he said.

And Russia’s Deputy Prime Minister Alexander Novak had warned on Thursday that Moscow would “simply not supply oil and petroleum products to companies or states that impose restrictions,” according to Russian news agencies.

‘Powerful tool’

At a summit in June, the G7 leaders agreed to work towards implementing the ceiling on crude sales.

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In their statement, finance ministers from the G7 said they would “urgently work on the finalisation and implementation” of the long-considered measure, without specifying the cap level.

The price cap was “one of the most powerful tools we have to fight inflation and protect workers and businesses in the United States”, US Treasury Secretary Janet Yellen said in a statement Friday. 

She said the measure already was beginning to influence prices, with countries that have not yet committed to join the cap able to negotiate lower prices from Russia.

“We’re already seeing this initiative pay off because countries that are buying Russian oil are signing deals with Russia to sell oil at greatly discounted prices,” Yellen said on MSNBC.

She said the capped price “will be set at a level that will continue to make it profitable for Russia to produce,” rather than follow through on Moscow’s threat to shut-in their oil and keep it off world markets.

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The G7 move would block Russia from getting any kind of service, including maritime insurance, on its petroleum shipments unless the product is sold at or below the cap, she explained.

And Yellen noted that G7 countries provide the vast majority of such services, including maritime insurance, 90 percent of which come from Britain and the EU. 

A senior US Treasury official told reporters that the cap would include three prices, one for crude oil and two for refined petroleum products.

The French finance ministry said technical work on the price cap was still in progress.

“It is clear that no final decision can be taken until we have consulted and obtained unanimous support from all 27 member states of the European Union,” it said.

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“We support all measures that reduce the income that Russia derives from the sale of oil,” French Finance Minister Bruno Le Maire added.

EU Commissioner Paolo Gentiloni said the bloc aims to find a deal by December 5 for crude oil and February 5 for petroleum products.

‘Broad coalition’

The G7 also voiced ambition to extend the measure beyond the bloc, saying it was seeking to form a “broad coalition” of support for the oil price cap to “maximise” the effectiveness of the measure.

The ministers urged “all countries that still seek to import Russian oil and petroleum products to commit to doing so only at prices at or below the price cap”.

The push to get as many countries as possible to go along with the cap is expected to be a key topic for discussion by leaders at the G20 summit in Bali on November 15 and 16.

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The initial cap would be set “at a level based on a range of technical inputs” the G7 ministers said, adding that its effectiveness would be “closely monitored”.

Analysts warned, however, that the cap may yet fuel another rise in prices.

The cap would introduce new risks for the oil market by “potentially disrupting Russian energy supplies”, Capital Economics analyst Liam Perch said in June. “This could push global energy prices up further.”

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International

Brazil helicopter crash in Rio de Janeiro kills six, including pilots and international figures

The Rio de Janeiro Civil Police confirmed on Monday the identities of three of the six victims killed in a helicopter collision that occurred the previous morning in the Recreio dos Bandeirantes neighborhood.

All three identified victims are Brazilian nationals: the pilots of the aircraft, Charles Marsillac and Alexandre Souza, and music producer Lucas Brito.

The identities of the three foreign victims have not yet been officially confirmed. They include U.S. singer Oliver Tree, Argentine YouTuber Gaspar Prim—known online as “Gaspi”—and Argentine producer Lucas Vignale, all of whom were listed on the flight manifest.

According to police, forensic experts from the Legal Medical Institute have already collected DNA samples in order to identify the foreign victims, whose bodies were severely burned.

One of the helicopters crashed into a private parking lot, triggering a fire that destroyed around twenty electric vehicles. That aircraft was carrying the pilot and four passengers, including the three foreign nationals.

The second helicopter, which had only the pilot on board, crashed approximately 100 meters away from the first impact site.

Rio de Janeiro’s deputy mayor, Eduardo Cavaliere, stated that both helicopters were operating transport flights toward Angra dos Reis on the Rio coastline and toward the mountainous region of the state.

Oliver Tree, 32, was in Brazil as part of an international tour. The artist, known for songs such as “Life Goes On” and “Miss You,” had performed to a large audience in São Paulo a week earlier and was scheduled to continue his tour in Europe.

Argentine content creator Gaspar Prim, 23, had built a following of more than two million on social media platforms, gaining popularity for humorous and often controversial video productions that had occasionally been removed by hosting platforms.

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International

Mexico and U.S. Launch New Bilateral Security Group to Combat Fentanyl and Organized Crime

The governments of Mexico and the United States officially launched the Bilateral Implementation Group (BIG) on Friday, a new initiative aimed at strengthening cooperation on security issues and enhancing joint efforts against transnational crime.

In a statement, U.S. Ambassador to Mexico Ronald Johnson announced that he and Deputy Foreign Minister Roberto Velasco addressed officials from both countries who will lead what he described as a “new phase of bilateral cooperation.” The initiative seeks to curb the flow of fentanyl and other illicit drugs, illegal firearms, and human trafficking across the shared border.

Earlier this week, Mexico’s Ministry of Foreign Affairs had confirmed that senior security officials from both nations would meet in Mexico City on June 12 to review and advance existing cooperation agreements.

Through social media, Ambassador Johnson explained that the new bilateral group is designed to improve coordination between the two governments by placing greater emphasis on implementation, accountability, and measurable results. The effort will also focus on combating transnational criminal organizations operating across North America.

“The participation of 15 U.S. government agencies, working alongside their Mexican counterparts, reflects the seriousness of this effort and our shared commitment to delivering measurable results,” Johnson said.

The ambassador also highlighted several achievements that he attributed to ongoing bilateral cooperation. According to Johnson, maritime drug trafficking into the United States has declined by more than 95 percent, while overdose deaths have fallen by 35 percent.

He further noted that Mexican authorities have seized more than 400 metric tons of illegal drugs and dismantled over 2,300 clandestine laboratories as part of their efforts to combat organized crime and narcotics production.

The launch of the Bilateral Implementation Group marks the latest step in the security partnership between Mexico and the United States, as both countries seek to address shared challenges related to drug trafficking, arms smuggling, human trafficking, and the activities of criminal networks operating across the region.

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International

‘El Chapo’ Guzmán again asks Mexican president to seek his return from U.S. prison

Convicted drug trafficker Joaquín “El Chapo” Guzmán has once again appealed to Mexican President Claudia Sheinbaum to intervene on his behalf and seek his transfer from the United States to Mexico, where he hopes to serve the remainder of his prison sentence.

Guzmán, the former leader of the Sinaloa Cartel, is currently serving a sentence of more than 50 years in the United States after being convicted in 2019 on multiple charges, including drug trafficking and money laundering.

According to reports, the latest request was made in a letter dated June 2, one of several messages that Guzmán has reportedly sent to Sheinbaum in recent months in an effort to secure his repatriation. In the letter, he expresses hope that the Mexican government can support the efforts of his legal team.

Written in English and by hand, the letter asks that he be allowed to complete his sentence in Mexico, arguing that such a transfer would enable him to receive visits from family members more easily.

Guzmán is currently being held at the United States Penitentiary Administrative Maximum Facility in Florence, Colorado, commonly known as the “Alcatraz of the Rockies,” one of the most secure prisons in the United States.

As in previous communications, the former cartel leader complained about his prison conditions, stating that he remains in near-total isolation and has little to no contact with other inmates.

He also reiterated his long-standing claim that he did not receive a fair trial in the United States and argued that the Mexican government bears responsibility for much of the violence associated with organized crime in the country.

In the letter, Guzmán maintains that his actions were motivated by a desire to protect himself and his family amid the violence linked to criminal organizations in Mexico.

Mexican authorities have not publicly indicated whether they plan to respond to the request. Guzmán remains one of the most notorious figures in the history of international drug trafficking and is serving his sentence under some of the strictest security measures in the U.S. prison system.

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