Potential losses could amount to $76-80 billion annually
The new strategy involves a complex diplomatic game with key players in the global energy market. Before anything else, the G7 countries plan to sign agreements with the monarchies of the Persian Gulf to increase oil production. Additionally, they will attempt to persuade India and Turkey to switch to Arab suppliers instead of Russian oil. Furthermore, Western countries are considering the possibility of imposing tariffs against countries that support Russian energy exports.
The G7 countries are also offering India and Turkey more favorable terms for lowering oil prices, which could have huge economic advantages. An incentive for Arab countries is the need to attract funds for economic development and budget support.
One of the main risks is a possible collapse in global oil prices due to a sharp increase in supply. Price stability can only be ensured if Russian oil is replaced in Arab markets, which could help limit the financing of Russia's military operations in Ukraine.