January 16, 2023: The Group of Seven’s oil price cap scheme intends to limit Russian oil export revenues works “so far so good,” Amos Hochstein stated, presidential coordinator to President Joe Biden.

“As oil prices have decreased, there’s no doubt that the cost cap has, so far, and there’s a much way to go, as we discuss today, achieved our interest, which was to have a continuous supply of oil on the market to support economic growth which limits the value that oil makes for Putin,” he told on Friday.

The price cap initiative was introduced on December 5, when the EU stopped which takes Russian crude oil. The cost scheme requires buyers outside of the G7 using Western services like maritime routes, insurance, and financial to pay no over $60 per barrel for seaborne Russian crude oil.

EU countries cannot access seaborne Russian oil products as of February 5.

President Vladimir Putin announced that Russia would stop supplying crude oil and oil products for five months to the nation that adhered to the cap, beginning on February 1. The retaliatory move will be pursued by a ban linked to refined oil products.

Hochstein stated that, while the scheme was still in its starting days, “the fact that the discount on Russian oil is widening is a good thing; we hope that continues. We’ll see where it takes us.”

He should have specified how much the U.S. believes the expense ceiling initiative costs Russia. Finland’s program for Research on Energy and Clean Air estimates that this toll is at €160 million ($172 million) daily.

The plan faced significant scepticism from some analysts while the G-7 and its ally Australia sketched it out.

Former U.S. Treasury Secretary Steve Mnuchin stated the initiative was “not only not feasible, and I think it’s the ridiculous idea I’ve ever heard.”

“I’m glad that where everyone is in doubt, the price cap would be working, I think sometimes people tend to think if it’s not been done before, it’s not possible. I probably the G7 got together, it’s part of the unity of the G7, and it’s so good,” Hochstein stated.