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This won’t make all that much difference

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In response, leaders of the G7 block of advanced economies meeting in southern Germany have been examining American proposals for what Janet Yellen, the US Treasury secretary, has termed “price caps or a price exception”. This could work via a mechanism that restricts insurance or financing of Russian oil shipments over a certain value.

So, Russia offers to insure itself, then sells on CIF terms, not FOB.

Ie, pay when it’s delivered, not when it sets sail. That solves – much of – the financing problem. This can also be done as the metals markets show. Some metals are habitually traded FOB. Others CIF. Shrug.


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