G7 seeks to curb Russian oil income

The Group of Seven rich nations debating price cap

The Group of Seven rich nations are debating a global price cap for Russian oil that would curb Moscow’s energy revenues and potentially limit its ability to fund its invasion of Ukraine. Higher crude oil and fuel prices allowed Russian revenues to climb in May despite its export volumes slipping due to sanctions, the International Energy Agency said in its June monthly report.

Russian oil export revenues are estimated to have increased by $1.7 billion in May to about $20 billion. The G7 nations have agreed to ban Russian oil imports, although some over time. Europe was still the destination for 43% of Russian oil and fuel last month. China’s imports of Russian oil and fuel have risen, while India has overtaken Germany’s place as the number two destination.

The G7 would ideally like to end Russian oil sales, but accepts that increased output from producers would not make up the shortfall.

https://www.reuters.com/

Germany Gets Ready For Gas Rationing

Emergency plan in case the supply from Russia is interrupted

Germany is preparing for a potential disruption of natural gas supply from Russia and activated an emergency plan on Wednesday, ahead of the Thursday deadline Vladimir Putin has ordered for gas-for-ruble payments.

Germany triggered an emergency plan in case the supply from Russia is interrupted. The plan could see rationing of gas supply. Other EU member states, including Greece and the Netherlands, have also placed their systems and stakeholders on high alert. Italy and Latvia also issued warnings of potential disruptions. Putin has set a March 31 deadline for the government, Gazprom, and the central bank of Russia to make the arrangements for payments in rubles from the so-called “hostile” countries.

The Russian President—whose list of “hostile” states includes the United States, all EU member states, Switzerland, Canada, Norway, South Korea, Japan, and many others—ordered last week the central bank to develop a system for payments in rubles within a week. The EU and G7 rejected the Russian gas-for-rubles idea, saying that changing the currency of the payments would be a breach of contract and that Europe would not be blackmailed into buying gas with rubles. Yet, the emergency plan in Europe’s biggest economy, and warnings in other European markets, signal that the EU is preparing for a worst-case scenario of disrupted gas supply from Russia.

https://oilprice.com/

G7 Targets Tech Corporations With International Minimal Company Tax

Minimum global corporate tax of at least 15%

Tthe Group of Seven (G7) agreed on Saturday to support a minimum global corporate tax of at least 15% to deter multinational corporations from avoiding taxes by investing profits in low-interest countries. The G-7 finance ministers’ meeting in London also supported proposals to get the world’s largest corporations – including US tech giants – to pay taxes in countries where they have high sales but no physical headquarters.

UK CFO Rishi Sunak, the host, said the deal would “reform the global tax system to make it fit for the global digital age, and most importantly, to ensure that it is fair to allow the right companies to pay the right taxes to the right.” Digits pay “. . “ US Treasury Secretary Janet Yellen said the deal “provides a tremendous boost” to the achievement of a global deal that would “end the race to the bottom in corporate taxation and ensure fairness for the middle class and working population in the US and around the world “. . “

https://taxnewsdaily.com/