The G7 has prepared a three-stage cap on Russian oil prices.

According to Assistant Secretary for Economic Policy Ben Harris, the price ceiling will first be introduced on crude oil, then on diesel fuel, and finally on cheaper petroleum products, such as naphtha. The specific price ceiling the West will establish is still unknown. But, according to Harris, it will be high enough for Russia to have economic incentive for its extraction and will exceed the cost of oil at the most expensive well in the Russian Federation. The price cap is due to come into effect on December 5 – the starting date for the European Union’s oil embargo. Harris said the goal of the G7 sanctions is to reduce Russia’s oil revenues without limiting the resource’s supply on the market.