The U.S. Treasury Department stated today that the cap being considered by the G7 should reflect a fair market value and should not include a risk premium associated with the conflict in Ukraine. According to the Treasury Department, the restriction should be set above Russian oil production costs while also considering historical prices.

Last Friday, the G7 agreed to place a price cap on Russian crude oil exports. The cap will be implemented by rejecting insurance, funding, brokerage, and other services to vessels transporting Russian petroleum unless its price is set at or below the yet-to-be-decided cap.

The marginal cost of production for Russian oil is one of several important data factors that the U.S. Treasury Assistant Secretary for Terrorist Financing and Financial Crimes, Elizabeth Rosenberg, suggested should be considered when determining final prices.

“There are several key data points we are considering and how the prices should ultimately be set and that includes the marginal cost of production for Russian oil,” Rosenberg said.

In response to the move, Russia said it would stop selling oil to countries enforcing the cap. “We will not supply gas, oil, coal, heating oil – we will not supply anything,” President Vladimir Putin said this week.

Russia has attempted to be as explicit as possible about its position, but discussions on the oil price cap are still ongoing, and the European Commission has just suggested another cap: on Russian gas imports into the EU.

That specific proposal hasn’t won everyone over. Germany is dubious about its chances of success, and Hungary openly warned today that it would result in a suspension of Russian gas shipments to Europe.

Ahead of a meeting of European energy ministers to discuss ways out of the issue, Hungary’s foreign minister, Peter Szijjarto, stated that doing this would be against European interests, as reported by Reuters.